I often want to get out of a trade to quickly, like right now. I see some of my gains on the NDX & RUT puts going away and I want to sell the puts and save my profit. Often, when I indulge myself, and take my early profit I regret it later. I covered my UAUA short after the big drop on Monday @ 36.40, now UAUA is at 35.
One of my goals this year is to wait for the signals to trade.
I like to look at MACD, Slow Stochastics, RSI (2 or 3 day), support & resistance. I also look at ATR trend lines and a few other common indicators. I'm limiting myself to the 60 minute charts or the daily charts. Shorter term charts make it hard to hold a position.
When I figure out how I will add some charts here.
Wow, down we go again. That seems to be what Cramer wants, a washout. Over on Real Money he is complaining about the strong closes not letting the markets get washed out.
After selling 1/2 of my index puts I don't have as much downside exposure as I would like but that is what I get for selling early to ease my worry. I suppose this could be the bottom of the correction but those interest rates are a bit higher, so who knows.
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