fuzzymath, On Thursday I bought FFIDX, it rose Friday with the market, but on today's big decline I sold. I made a 0.55% profit and am now in cash again.
Glad to hear you picked up a nice quick profit. Depending on the size of the stake, that type of short-term trading can work quite well, and with manageable risk (i.e., less exposure).
Somehow, I feel that I might be better off over the long haul, if I maintained a consistent 'AIM' psychology of selling on an upstroke rather than selling when the markets are pulling back; otherwise, I just might end up doing the wrong thing at the wrong time.
In the example above, to my way of thinking, I would have preferred to exit on Friday when the index was having a positive day. Of course, that's not always possible, and it does make sense to me to lock in a profit, quickly earned, rather than ending up in loss situation.
Do you have trading rules posted at your site? I would be interested to have a look at the rules you use for entry, exit, etc.
Thanks for sharing your thoughts.
Regards, Jack |
