DPR Update: Fri, 26th May 2017

DPR Update:  Nothing to do, but hold the position

Often in trend expansions into new highs the projections are taken from the size of the range it last broke out of.  In this case its about 50 S&P 500 points.  Should that come to fruition the QLD is heading higher and the S&P 500 is on a breakout to 2440-50 range.  All in all. it just goes to show you as this new trade closes today about 5% in profit, that we never know when the winning trades will come.  And sometimes they come on the back of a previous winner, as in this case.   I remember stating my thoughts at the time…I was concerned that the trend was at an end and this trade would probably be a loss, but that I would take the trade anyway and stay in integrity with the system no matter what.  Well, so far I am glad I did, and will continue to do so, no matter what.

The only way I know how to win in the market is not by the seat of my pants.  I have never been a good discretionary trader.  And I tried numerous times in the now distant past.  I have also never found it useful to sit down and find 20 trading ideas for the week and guess for example which way or that an earnings release would go, or a try and take advantage of a company’s fortune when a crisis happens and they are the one best suited to profit from it.  I have the thoughts sometimes, for example, I was thinking about that virus that caused panic a couple of weeks back.  How all the net security firms CEO’S must have been rubbing their hands with glee.  If I was into that type of news trading then it would make sense to bet on a listed net security firm hitting higher prices at the beginning of that week.  But that’s not what I do.

You see, I must have rules…actually more than rules.  I must have a fully explored backtested system that proves to me at least that over the period of the next number of years I have a high probability of success no matter what the market throws at me.  Everyone is different, and some say it’s not even possible to have a fully automated system/process that works long term, but I beg to differ, its the only way I know how.

Have a great weekend,

John