I've stated in other threads that I've mainly been concentrating on tight consolidations in volatile stocks that are trading with unusually high volume. However, I've also stated that this comes with a win rate below 50%. There is a lot of decision making in the moment, and although I've done very well, I'm 55 and in my 27th year of trading and it's becoming an exhausting grind.
On the bright side, I've also been implementing a mean reversion strategy over the last few years. And after about a decade of back testing and painstakingly verifying those results, I finally have it dialed in. The entries are automatic after a stock hits my scanner and that's what I've been looking forward to for many years. I just had to put up with the grind until I got here.
I know last week was only a 4 day week, but more than 90% of my trades were mean reversion, and for the first time in months, I didn't have a losing day. And although I did more than 10x the amount of trades I normally do per day, it was surprisingly relaxing. In short, trading is fun again.
I'm sure I'll still do an occasional consolidation breakout here and there, but the potential risk/reward will have to be so good, I'll have hit the buy or short button before I even have a chance to think about it. But if I were to only do those trades, I would maybe do 15 to 20 trades per week, and the waiting in between them would be a grind in and of itself.
I've always loved deer hunting, but I suck at sitting in a stand all day and waiting for them to come to me. Come to think of it, every deer I've ever bagged was when I was walking. It's just how I roll. I just don't have the patience to sight tight when I feel I could be doing something more effective.
Obviously, I won't get into specifics about my strategy, not to mention tactics. But I'd be glad to address general questions about the transition, and I'd also like to hear from others who have had any similar experiences.
Happy Easter everyone.
On the bright side, I've also been implementing a mean reversion strategy over the last few years. And after about a decade of back testing and painstakingly verifying those results, I finally have it dialed in. The entries are automatic after a stock hits my scanner and that's what I've been looking forward to for many years. I just had to put up with the grind until I got here.
I know last week was only a 4 day week, but more than 90% of my trades were mean reversion, and for the first time in months, I didn't have a losing day. And although I did more than 10x the amount of trades I normally do per day, it was surprisingly relaxing. In short, trading is fun again.
I'm sure I'll still do an occasional consolidation breakout here and there, but the potential risk/reward will have to be so good, I'll have hit the buy or short button before I even have a chance to think about it. But if I were to only do those trades, I would maybe do 15 to 20 trades per week, and the waiting in between them would be a grind in and of itself.
I've always loved deer hunting, but I suck at sitting in a stand all day and waiting for them to come to me. Come to think of it, every deer I've ever bagged was when I was walking. It's just how I roll. I just don't have the patience to sight tight when I feel I could be doing something more effective.
Obviously, I won't get into specifics about my strategy, not to mention tactics. But I'd be glad to address general questions about the transition, and I'd also like to hear from others who have had any similar experiences.
Happy Easter everyone.
