Last post about
rally into the Christmas is a great example how people should not trade of someone else's method without knowing all the intricacies. E.g I'll be out immediately if I feel wrong, might reverse too, and posting here about it won't be a first priority. Stocks were looking strong for a day and then dumped hard which is indicative of what to follow. I was very long in anticipation of a short lived rally. It didn't happen so I closed at the loss. That's opportunity cost, rather large in this particular case due to a tactical mistake. But big money are made on multi-day / weeks moves so it's ok. The key is to get on that move with a substantial size and not to take profits too fast. Tight stops allow to operate at size when the move begins. Might pyramid on a way once in profit. Comes with a low win rate and is frustrating at times, but when big directional move happens those are game changers. I'm heavily short from yesterday's pre-open, we are back to a bear market. Yesterday' stats were telling me we were overdone on the down side after multiday down move, but tape indicates it's just a beginning.
PS. Managing positions is my first priority so those posts could be coming days later after action happens. Once again this journal is not to provide tradeable ideas to someone else, but to share what kinda thinking goes into profitable trading.
Remember that price is always right, don't fight the price.
