The markets took a monstrous hit last week. The channels that define the price movements are currently ambiguous. My trading will be very cautious until I see some directions that defines these channels.
When being cautious, I'll reduce my exposure to 25-50%. If I know a stock is breaking out on heavy volume and risk is low, I'll load up beyond this rule, sometimes to 200%.
I made my stock list for the week. There are 145 stocks listed, quite a bit for such a big downward move on the market last week.
I'm really going to try to scrutinize my daily list, starting Monday. I have 5% banked so far this year (3 weeks of trading). As mentioned in my first post, my quota is 1% per week, so I can actually sit back and not trade at all for the next two weeks and still make my quota. This gives me the freedom to wait for the perfect setup. Stocks still breakout in down trends, just not as frequently, so I might need all of the two weeks just to make another 1%.
Feel free to review my list and post potential additions.
