Trading Journal
“First learn to trade then the money will follow!”
Today, watching Soloway’s trading video enabled me to acknowledge that if I traded ETFs of the major stock exchanges like the S&P (SPY), Nasdaq (QQQ), and the Russell 3000 (RUA) it would have increased my trading opportunities.
The reason why I didn’t do so before was because I was wrongly fixated on trading the actual financial markets directly. This would have required me to increase my capital burden substantially. However, I always had the option to trade the ETFs instead.
UAL and HSY TRADE
As the price action of UAL and HSY has continued to decline it had the affect of hitting my stop-losses, causing me to sustain a loss.
As a result, I will look to make additional 1/6 entries back into these stocks on Monday when the markets reopen.
MANA / BTC TRADE
The price action concerning my MANA trade triggered my stop-loss even though BTC has not moved that much. It appears that I severely underestimated the amount of market noise that would occur with this altcoin.
Therefore, in the future, I have got to be mindful of ensuring that there is sufficient room for market noise on the daily timeframe. Annoyingly, in hindsight, it was blatantly obvious that I did not leave enough room when setting my stop-loss (purple line number 2).
GLD (Gold) TRADE
I was looking for a great opportunity to make a re-entry into Gold, but this does not appear to have presented itself as the Gold price has broke-out above the current resistance line. Therefore, I am now waiting for the Gold price to return back to the scene of the crime (pull back) so that I can make a good entry. If it does not, then I will just have to move on to other trading opportunities.
LUV TRADE
I was able to make a 1/6 position entry into VAL today:
As can be seen on the chart above, I decided to place my stop-loss at a substantial distance to ensure that the price action has ample room to decline. This is a similar trade to UAL and HSY in the respect that the price of these stocks appear to have declined irrationally, and are hitting major areas of support in light of their weekly and monthly timeframes. Now, it is just a case of applying the correct trading strategy to capitalise on the probable opportunity.
Next Action
- Update trading spreadsheet with current trading losses
- Use ETFs to trade the main indices
- Continue to monitor BTC trade