Wednesday, February 23, 2011

Short-term Trading blog is open

The market is going down again, today; However, I wouldn't panic until you see the retail investors in AAPL panic. And panic is a bad word. I guess I should say, the trend has not switched over yet.

Using an 8 day average, the SPY and DIA have been on an upward trend for 59 days. So we are at the top of the high range, slowly rolling over the edge. Unfortunately, I've missed some of this latest rally.  I was betting on a "sideways market" and jumping out too soon. I was using position sizing, risk/reward, discipline, expectancy, etc. All the things we have learned to do to survive swing trading.  I did well, selling the advancing stocks, but ended up keeping the stocks that went nowhere. Sort of creating a portfolio of what my first assumptions were.  Maybe looking at SPY & DIA is a better measure of trend.

That's my amateur guess.

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