There is no book link, but there is a link to a sign up page for a 1 hour webinar/class on basic trading. If you are serious about this endeavour, you need to do this thing…
To the Round – Up, easily second only to Christmas for excitement.
Our $100,000 starting portfolio now sits at: $142,130.90
This theoretical exercise will continue until this confounded year has stopped breathing and then there will be some changes around here. We shall continue this exercise, but with expanded methods.
The first phase of my course is ready to go (get started with the sign up above), the Private Facebook Group is also set. A forum for people enrolled or involved with the Alpha and Omega in a monetary way can ask questions, AND have them answered.
For you curmudgeons out there for whom every pound/dollar/euro is a prisoner, you will still be able to read the questions and answers, but like Marley you won’t be able to interfere, though you could have (and still can).
To the Round-Up…
We had three open positions as the weekend arrived at our door, so let’s take a look at those charts first.
S&P 500: SSO = UP, SDS = DOWN
We got into this trade about 10 trading days ago per our process. We immediately set a trailing stop to protect ourselves. The stop follows the price up and, in this case, is anchored by the highest price you can see on the right hand side of the chart.
If the price falls back and touches our stop, shown by the red line, at $84.29, we are automatically taken out of this trade.
Gold: UGL = UP, GLL = DOWN
GLL is the stock market proxy we use for gold declining. As it goes down GLL rises. We got into this position around seven trading days ago.
You can see that the high has anchored our trailing stop at $31.51. If this price is touched we are out automatically.
You can scroll down to previous posts if you wish to see the process demonstrated that got us into these trades.
Dollar Index: UUP = UP, UDN = DOWN
UDN represents the U.S. Dollar declining against a basket of global currencies, by rising. We have also been in this trade for about seven trading days. A high at $21.66 and a stop set at the time of the trade .25 under the trade price means our stop out is at $21.41.
This, coincidentally, is the trade price. This also means that should the price decline and we get stopped out, it is at breakeven.
When we are at breakeven with a trade in this manner, where we are out of the danger zone, it is also known as, “Happy Days are here again!” Honestly, it is a thing.
Oil: UCO = UP, SCO = DOWN
UCO is our, “oil is rising” proxy. The problem with oil, while it has made some gains in the futures, there hasn’t been a trade per our process in quite some time. You can see that the moving averages are all lined up politely, but the resistance level (black horizontal line) is still an impediment.
We need a CLOSE above that line to spring panther-like into action. You will note that I used capital letters for CLOSE. It is important that it is a close and not a cross, and scurry back)
20 year Treasuries: UBT = UP, TBT = DOWN
This TBT, it represents 20 year treasuries declining. You can see on the right hand side of the chart that our moving averages had done their job per our process, but once again the resistance line prevented a completion of our trade.
We were tantalisingly close as we did get a CLOSE above resistance and that caused us to place a stop-buy just above the brave little candle that had stuck its head above the line and held it there.
The price immediately fell back. This why our process is shaped the way it is. We take precautions around support and resistance levels and try not to get too silly about it.
You can see how the price did as the Japanese Candle Traders term it, “fell off a wall”.
I really dislike the no-man’s zone that can be created by a resistance or support level. The price can bounce around in there for a long time. If that zone was big enough it could be traded at the top and bottom.
We shall look at doing that as the New Year opens and we expand the trading methods we use for this exercise.
That’s about it for me. Please click this link and sign up, you will receive a link to the class that you can watch at any time.
It is time to get serious!
If you have, ever have, any questions about the foregoing or anything in your trading world, please drop me a line: