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Are you being slapped left and right?

Posted by Satuki On July - 8 - 2010

I think a lot of traders are.  Look at the chart below.  If you were long before point C and you are disciplined,  then you would have been stopped out of most of your positions. 70-80% of your portfolio follows the general market.  That is why some people prefer trading E-Mini.

 

If you were ambitious, you perhaps flipped to the bear side.  It did make sense to short the market at that point since C was a major support.  Nevertheless, the end result is that you are slapped left and right.   Those were textbook set-ups. But they did not work this time.

 
Click on the image to have a better view

 

 

That is trading.  You will have to have the stomach for this.  Anyway, the market will probably remain weak for the summer.


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Most Commented Posts


  • http://twitter.com/jdub929 Jeff Wilson

    Who hasn’t been?! Like you said, most traders are. If institutional traders are finding this difficult, what more retail investors. I’ve been taking in smaller profits as the moment I’m profitable–even for $10, I immediately put in my stops and just continue to adjust and widen trailing stops as the trade becomes more profitable. I’ve also signed up for a low cost broker to limit commission charges. Lastly, I’ve traded a lot more options as it teaches me to be more patient with some trades using different strategies.

    Hope everyone is doing alright.

  • http://twitter.com/jdub929 Jeff Wilson

    Who hasn't been?! Like you said, most traders are. If institutional traders are finding this difficult, what more retail investors. I've been taking in smaller profits as the moment I'm profitable–even for $10, I immediately put in my stops and just continue to adjust and widen trailing stops as the trade becomes more profitable. I've also signed up for a low cost broker to limit commission charges. Lastly, I've traded a lot more options as it teaches me to be more patient with some trades using different strategies.

    Hope everyone is doing alright.


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