With such a high volatility and unbelievable moves, there happen crazy things. So, my biggest mistake made most of the money last week.
I hope you could profit from the big moves or at least did not lose to much!
Now it’s official: Bear market!
As price fell more than -20% we are in a bear market since Thursday:
The more you’re reading and listening to analysts or traders, the more different opinions you’ll get. But most of them still expect lower price levels. For me, it is more likely to see one or two more bullish candles, others are sure that we will already fall down on Monday.
For long term investments I recommend to buy partials, then you still have cash to buy more at lower prices. And for swings I recommend not to trade at the moment.
Of course, you can continue your day trading. But here you have to pay attention on the high volatility because the distance between entry and initial stop often leads to a crashed account after some losses in a row in this environment.
Big profits!
Can you remember that I wrote two weeks ago about my mistake with the stop for ACM?
And I did not close it immediately but held it for hedging.
It paid off this week:
I sold 50% of the position at the two levels you can see in the chart. The first one leads to a profit of +3R of my average risk and the second one to +2.5R. So, although my accounts are down a lot with my buy and hold positions, the realized profit of the week is +5.5R. Not bad.
Let’s see how markets will develop the next weeks. After a bullish move I would go short with another stock for hedging again.
Focus on futures
My current focus is still on futures. I improved my rule sheet and plan and this week I made +$28.64 on Wednesday. The other days I decided to only paper trade because I am not good enough to trade the high volatility.
I am trading not one clear strategy at the moment but I am testing some ideas. There will be an article only about futures trading soon to explain a little bit why I love it and what I am doing in general.
Isn’t it crazy that my biggest mistake made most of the money this week? Of course, I learnt two lessons with the articles of the last weeks:
- Too often I expect a bullish move or I calculate with a too little bearish move. I have to become more comfortable with the short side.
- I sold a lot around the high and had the right bias but because of my “good feeling” I had to sell much more to create more cash for lower prices and some short positions had made me more money like the ACM mistake.
Enjoy the markets, learn a lot, and stay green and healthy!
