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Tuesday, July 22, 2008

How Do We Take Profits?

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $986.79
Online Savings Balance: $37.30

Personal Trading Thoughts: Soymeal continues it's fall. The option raised in value to 2.00, which is where my limit sell order is. But there is not guarantees on a fill with a limit order; especially in a thin market. Market just bumped slightly higher overnight, but seems to be sitting up well for a down move again today. As I mentioned before, I fully expect to see the high 360 region to 355. We'll see if we get a fill.

EDIT: I just got the notice, that I got filled at 2.00, or $200 for a fill. Awesome.

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market is generally weaker in the summer, so I'm not a buyer. Many years, I turn my DRIP off in the summer, and receive straight cash. But not this summer. We've been in a bear market, and the market is offering bargain prices on many stocks. Therefore, my DRIP will remain on, so that I can accumulate more shares at better prices to DCA ...

Yesterday, I received an excellent question here at the daily blog. It has to do with how to take profits? I discuss that in this video ...

The other thing I want to say on what indicators I look for?

I look for 1) A chart pattern, 2) Time cycles (I use Larry Williams 1.28 rule), 3) Slow Stochastics, and 4) Aroon for the change of trend. I do not use Aroon for taking profits. I just watch it for a change in trend at the beginning of the trade.

* * *

Investing Account Balance: $228.77
Stock / Futures Trading Balance: $986.79
Online Savings Balance: $37.30

Total Trades: 5
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $62.40
Average Loss: $79.81
Accuracy Rate: 40%
Average Reward: $175.34
Risk : Reward Ratio: 1 : 2.2
Trading Money Gain / (Loss): Up - $111.50

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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