Wednesday, August 4, 2010

Seriously thinking of taking a break...

The markets are extremely tough right now. They have moved sideways for the past three months and very few stocks that have broken out of decent bases have followed through. I am seeing few of the set ups that I like. Of the few that I do like, most of them are failing. I think the best thing for me to do at this point is to take break and just observe and wait until "easy money" times emerge again. When I am seeing millions of set ups that I like and hardly any of them are failing. Thats the best environment to trade in. Right now it seems the best place to be for swing/position traders is in cash taking a few well selected speculative trades with 1/2 the usual per trade risk occasionally.

I am currently still long of IDT and BP but I have my stops very tight on these. In fact, my risk is less than $40.00 on both positions excluding commissions. The last three months have been a roller coaster but I want to stop this and get my equity curve back to a consistent stair step pattern.

So I am moving towards less trades and smaller positions size until I get back into my groove.

Looking forward to better times.

Good luck and good trading!

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