Bum, thanks for the critique and the advice.
Just goes to show how inexperienced I am at trading. I knew XLE was in a downtrend, but thought that the risk/reward was in my favor. My thinking was that if XLE could break through and hold above the 20-day MA, it might go even higher. This was intended to be a short-term trade, with stops being continuously moved up as warranted. Obviously it was a mistake. Lesson learned. Hope not to repeat the mistake.
Now a question. Once it became obvious today that a downtrend was in place on volume, should I have sold rather than have lamely watched XLE go through my stop?
A couple bits of information. I am primarily an energy and MREIT investor. Currently 100% cash, waiting on the energy sector to turn. Probably won’t be back into the MREIT sector for a long time.
My primary focus must necessarily be longer term than many here. I am managing 14 accounts, inclusive of those of my adult children, and it is impractical for me to attempt short-term trades in all of those accounts.
What appears to be a better plan is to capture the heart of major moves such as the one that occurred in the O&G sector from early January to early March. I don’t intend to buy until the technical indicators are aligned, and don’t feel it necessary to squeeze the last drop of profit out of a run.
I would appreciate very much any comments you might have regarding this strategy, which MA’s and technical indicators I should focus on the most, assuming the plan makes sense, and where I should attempt entries and exits. Would also appreciate advice on alternate strategies.
BTW, what is a Stage 3 uptrend, such as you describe the last run up in the O&G sector? Can’t find a definition at StockCharts.
Thanks again for all your help.
ridin |
