So both my practice trade on Yahoo and GE have flopped... miserably. I went back to using the "Christmas Cross" workspace and found that the Christmas Cross showed clearly that I should NOT trade.
I believe I will begin doing fundamental analysis to find stocks to trade (and in what direction) and then I will rely on the Christmas Cross from now on to determine when to pull the trigger. The downside to trading without the Christmas Cross is that other forms of technical analysis are fine for trading stocks, but the Christmas Cross has the precision and timing to trade options effectively.
I believe I may use the older methods when I begin trading just stocks, but for now I need to use the Christmas Cross.
On the flip side, I would have exited both trades with a small gain (around 10% GP) if I had used a trailing stop system to limit how much I could lose. Perhaps using the following approach would be most prudent:
1) Do fundamental analysis to find stocks and determine which overall direction they'll take
2) Determine the trend of the stock
3) Use the Christmas Cross for a trading decision
4) Use a trailing stop to let your winners run so that you can take profits quickly if the trade reverses
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