Wow - I guess I've been a little preoccupied with other activities. Finally something happens in the market, I actually do a trade in one of my accounts, and I don't even post until halfway through the next month! The Dow just broke over 11,000and last month my IRA account went from seeming far away from any trade to DD breaking way out and pulling the whole account to a point of needing to shed some stock. Even Cathy's account is showing some life. It is no longer close to a buy signal. Now IT's more in the middle of the range, like mine was last month.
DD is still moving - it's over 46 now (that's over double what I paid for it last year!) It's the main reason my account went way into the sell signal on the Market Order part of the AIM formula, so I sold 5 shares of it. The market hasn't shown any sign of tiredness since, though. Like I said, in the last couple days it crossed the 11,000 point and is continuing today.
Maybe I got lulled a little because the market hasn't been moving in large chunks. Just mostly 40-60 points a day, and an occasional 100+ day. Sure there are down days, but they have been pretty few and far between in the last few weeks. As we know with everything, nothing goes straight in one direction forever. I've been using that rule to trade some of my Volatile Stocks Options, which I report on in my other blog. I found that every time anything moves in one direction for too long, it creates a kind of bubble, and has to correct itself. I guess it's just human nature. After all, humans ARE at the bottom of all this, right?
That reminds me - I went against my rule of not touching the cash part of your account. I used it for some of the option trades I was doing. I guess it's ok if you can win enough to make your balance go up, and if you don't, you can reimburse yourself. Otherwise, bad idea. I'm down in my cash now from doing that, and I am in the process of reimbursing myself. I won't do it anymore until I am caught up. Just have to use self-discipline. Sometimes I'm bad about that. Shame on me.
Well, I guess it's only a couple weeks until the next check-point. I'll try to not be tardy this time.
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