Understood the overhead but I don't think that's an issue. Usually investors that bough at high prices and are waiting to recover are small chicken like me and big trends are driven more by institutions. You can look by yourself, this pattern repeats endlessly in almost all long term trending stocks. Also it reminds me, I think it was Livermore talking exactly about these repeating "jumps" he had observed.
I don't agree on your second paragraph, I call a respiration what you call a counter-trend.
I mean it's all relative...
Take QUIK for example, I think it's the worst from these picks, looking YTD he's lacking S&P, I well see the counter-trend you talk about.
Now, if you look at it TTM, it's almost inline with S&P
The simple causes that would make them to turn around and the reasons I enter the trade are the following:
1. They just broke their recent down trend in consolidation (red and pink lines).
2. To continue their longer term trend (from last July to April in this case).
All that said, I just have to stick to one method for now, I don't expect all my trades to be good, that would be too much. This paper trading is also to give feedback to myself, I'm not been trading this since years, just starting right now as you see it, that's why I need this.
Maybe you are right, maybe that head and shoulders pattern we see in QUIK was too much to be traded like I did but for now, that's not in my list as a reason to avoid a trade, maybe it will become but for that I have to try it before and see.
Thanks for your comments, I like to be challenged because for sure I never see everything in the charts and it's always good to have different perspectives from different people. Hope you will continue doing that about any pick here or in my real portfolio.
I really appreciate that. Thanks !
I don't agree on your second paragraph, I call a respiration what you call a counter-trend.
I mean it's all relative...
Take QUIK for example, I think it's the worst from these picks, looking YTD he's lacking S&P, I well see the counter-trend you talk about.
Now, if you look at it TTM, it's almost inline with S&P
The simple causes that would make them to turn around and the reasons I enter the trade are the following:
1. They just broke their recent down trend in consolidation (red and pink lines).
2. To continue their longer term trend (from last July to April in this case).
All that said, I just have to stick to one method for now, I don't expect all my trades to be good, that would be too much. This paper trading is also to give feedback to myself, I'm not been trading this since years, just starting right now as you see it, that's why I need this.
Maybe you are right, maybe that head and shoulders pattern we see in QUIK was too much to be traded like I did but for now, that's not in my list as a reason to avoid a trade, maybe it will become but for that I have to try it before and see.
Thanks for your comments, I like to be challenged because for sure I never see everything in the charts and it's always good to have different perspectives from different people. Hope you will continue doing that about any pick here or in my real portfolio.
I really appreciate that. Thanks !
