We took an exciting turn yesterday when I decided to change the theoretical portfolio we have been trading to carry on with the portfolio in my book: Basic Trading: ‘A Beginner’s Guide to Trading and Investing…PROFITABLY!’
I started in January 2020 and finished in the book April 30th, 2020. There are five instruments involved.
None of the on deck potential trades yesterday triggered, so let’s use this time for bit of a review.
Each instrument is a major component of the market place. And as such they have an ETF (exchange traded fund) as a stock market proxy. We do this because most of you – esp. beginners – don’t have futures accounts or the ability to sell short. Not that you don’t have the ability, it is more the restrictions of retirement accounts and the like. A feature of these symbols is that 8 out of the 10 are double up. In other words, the underlying instrument, say gold, goes up 1%, the symbol UGL goes up 2%. Of course, if you owned the inverse GLL and gold went up, it would go down 2%. It means the use of protective stops is paramount.
S&P 500 = SSO (UP) and SDS (DOWN)
Gold = UGL (UP) GLL (DOWN)
Oil = UCO (UP) SCO (DOWN)
U.S. Dollar Index = UUP (UP) UDN (DOWN)
20 Year Treasuries = UBT (UP) TBT (DOWN)
As trades trigger per our method, a chart and all trade details will appear here. As before, a weekend round up of all charts will appear at some point at the end of each week – trades or not.
You could use the methods and simple tools found in the book and as we go along here, to trade profitably, indefinitely!
If you have any questions or comments, please drop me a line at: firstname.lastname@example.org