Friday, September 23, 2022
another bf down day
Thursday, September 22, 2022
Peace!
Wednesday, September 21, 2022
Chicken!
I traded like a chicken today. I had all the right picks, all the right ideas. Building on my thoughts from yesterday about up days in a bear market I went for
MU - short covering in an oversold stock
UAL - weakness in a weak sector
OXY - short the profit taking gap
But I cut all of them way too short, because I was scared!
ugh, later, coulda shoulda...
Tuesday, September 20, 2022
Bear market mantras
Below is the breakout I tried to play long this morning. It was (what I call...) hard work. That is the feeling that it's just not launching like it was "supposed to". It was a hard climb. It didn't make it to my target. And later I see it failed.
This is what I want to remember about trading in bear markets: the pressure is down. Everything is heavy as if there is more gravity. Wet blanket on everything. It is a profit taking day for longs, because they are finally getting their chance. It is a stopping out day for shorts, buying to cover.
Breakouts will have no power and are likely to fail.
Trapped longs will look to sell. A breakout could be manufactured/manipulated as a selling opportunity (realization as I am currently reading Reminiscences).
On up days in a bear market: shorts will cover, taking profits by buying.
An up day in a bear market is not a wholehearted buying day. It is a short covering day or a profit taking day for longs. There is a lot of selling pressure into the strength (wet blanket on everything). On up days, breakdowns will also not work because it is a short covering (buying) day.
small relief
Popular Posts
-
I've been treading water. This market has been frustrating for me. I have tried various techniques for trading all this volatility and...
-
Had a sizable down day, and took a loser home. Both problems relate to a spready option that I made cardinal sins on: in too big, on somethi...
-
After a multi- multi -week losing streak, it's nice to have another sizable winning day (albeit on small account). A+ lesson is to pres...
-
It's been a pretty intense holiday season this year, cutting my trading days but also helping me get a refresh. In general, though, this...