Ridinycurve, welcome aboard.
>>> I would appreciate any comments on what I should do now, and would also appreciate comments on what I could have done differently at the outset. <<<
The very first thing you must do ..... and nothing else has priority over this ..... is to determine the time frame you wish to hold a position.
Once you determine the time frame, whether it's an intraday trade, swing trade, intermediate term trade or long term trade, you then pull up a chart for the time frame in which you wish to trade.
Your buy and sell strategies should be designed around your time frame and then the trend within that time frame.
I'm a swing trader. That means most of my positions are to be held for a 2-5 day time frame. With this time frame in mind, I must look at hourly and daily charts for my set ups.
If I were swing trading XLE, the first thing I would notice is that price is in a down trend. When in a down trend, I look for shorting opportunities, not long opportunities.
So, keeping that in mind, I would be looking for a short set up. The 20 day moving average is declining, it is also below the 50 day moving average. This confirms your down trend.
In a downtrend, I want to short into major resistance. That means shorting into the 20 or 50 day moving average.
You bought your position going into resistance. This is a high risk, low probability trade.
stockcharts.com[h,a]daclyiay[d20050205,20050505][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
There are a couple of strategies for buying beaten down stocks but, in the case of XLE, buying yesterday or today was buying into a set up that was better designed for shorting than for going long.
One of today's picks is a good example. I shorted CQB going into major resistance and the trade is working out very nicely.
stockcharts.com[h,a]daclyiay[d20050205,20050505][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
When using the indicators you have gained knowledge about, they are useless if you are betting against the trend. You can win against the odds on occasion but, you won't on a consistent basis.
Your patterns will be more noticeable as you gain experience. You will learn to look for favorable indicators when you are on the right side of the trend.
Please feel free to call on me with any additional questions.
dabum |
