People get panicky during corrections. Understandably, it can be nerve-wracking watching that stock you were sure was going up, going down. With the short term nature of the trading I'm doing, I don't worry that much, and especially when the corrections are garden variety ones.
ROST is down almost 10% since Dec 5th. That's a normal correction, especially for ROST. It's done that (or more) 4 times in the last 11 months, coming all the way back or more each time. Now I'm not predicting it will this time, too. The whole point of short term trading is not having to worry about earnings, the economy, who we enter a trade war with, etc.
But it is important to keep perspective and zoom out every once in a while. Looking too closely at the last two weeks for this stock could be unnecessarily frightening. 7 down days in the last 8. 4 in a row. Zooming out lets me realize that what's going on here isn't necessarily a crisis. It's (no pun intended) business as usual.
It helps that
ROST is one of my better stocks for trading the way I do. It also helps that there is some support relatively close. It helps that I have over 1100 backtested and real trades in ROST to look back on. When the history of the stock is 1122-2 (the 2 are the last two days), it makes the 10% drop lately seem less worrisome. Data is comforting in times of stress.
And those are lessons for everyone's trading, I think. Look at the big picture before getting nervous about the small one. Collect data on your trades, and let that story of success keep you calm in difficult times. And if it's a story of a lack of success, then at least you can avoid a mess before it happens and work on developing something new.
Per my usual strategy, I'll add to my position at the close on any day it still rates as a “buy” and I will use FPC (first profitable close) to exit any lot on the day it closes at any profit.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
ROST is down almost 10% since Dec 5th. That's a normal correction, especially for ROST. It's done that (or more) 4 times in the last 11 months, coming all the way back or more each time. Now I'm not predicting it will this time, too. The whole point of short term trading is not having to worry about earnings, the economy, who we enter a trade war with, etc.
But it is important to keep perspective and zoom out every once in a while. Looking too closely at the last two weeks for this stock could be unnecessarily frightening. 7 down days in the last 8. 4 in a row. Zooming out lets me realize that what's going on here isn't necessarily a crisis. It's (no pun intended) business as usual.
It helps that
ROST is one of my better stocks for trading the way I do. It also helps that there is some support relatively close. It helps that I have over 1100 backtested and real trades in ROST to look back on. When the history of the stock is 1122-2 (the 2 are the last two days), it makes the 10% drop lately seem less worrisome. Data is comforting in times of stress.And those are lessons for everyone's trading, I think. Look at the big picture before getting nervous about the small one. Collect data on your trades, and let that story of success keep you calm in difficult times. And if it's a story of a lack of success, then at least you can avoid a mess before it happens and work on developing something new.
Per my usual strategy, I'll add to my position at the close on any day it still rates as a “buy” and I will use FPC (first profitable close) to exit any lot on the day it closes at any profit.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
註釋
Still buy rated based on my algo, so I added a second lot at the close at 139.55.Lots held:
Lot 1 - 141.28
Lot 2 - 139.55
註釋
Sold lot 2 just before the close.Lot 2: 139.55 --> 140.518 = +0.69% in one trading day
Lots still held:
Lot 1 - 141.28
註釋
Added another lot at the close for 138.76Lot 1 - 141.28
Lot 3 - 138.76
註釋
Closed lot 3 for 139.06 -- a +0.22% gain in one trading day.Lots still held:
Lot 1 - 141.28
註釋
Added 1 lot at the close for 128.65.Lots held:
Lot 1 - 141.28
Lot 4 - 128.65
註釋
Added another lot at an average price of 126.456 just before the close.Lot 1 - 141.28
Lot 4 - 128.65
Lot 5 - 126.456
註釋
Added another lot at 123.30 today at the close.Lots held:
Lot 1 - 141.28
Lot 4 - 128.65
Lot 5 - 126.456
Lot 6 - 123.30
註釋
Sold lot 6 at the close for 124.21 -- a +0.74% gain in 1 trading day.Lots still held:
Lot 1 - 141.28
Lot 4 - 128.65
Lot 5 - 126.456
註釋
Sold lots 4 and 5 just before the close for 129.25.Lot 4: 128.65 --> 129.25 = +0.47% in 9 trading days
Lot 5: 126.456 --> 129.25 = 2.21% in 8 trading days
Lots remaining:
Lot 1 - 141.28
交易結束：目標達成
Closed the final lot of ROST at the close today for 141.51 - a 0.16% gain in 41 trading days.Well it turned out to be far from a "normal" correction over the last 2 months but in the end, like it always has, this trade in
ROST and trades like it outperformed in a down market. During a period when 
SPY lost 11.7% (-0.279% per trading day), and the stock itself gained only 0.16%, the 6 trades involved here netted a total of +4.49%. Not a staggering return by any stretch, but anyone who wouldn't take +4.5% since Feb. 10th is way too greedy for me. The individual lot trades went as follows:141.28 --> 141.51 = +0.16% in 42 trading days
128.65 --> 129.25 = +0.47% in 9 trading days
126.456 --> 129.25 = +2.21% in 8 trading days
123.30 --> 124.21 = +0.74% in 1 trading day
138.76 --> 139.06 = +0.22% in 1 trading day
139.55 --> 140.518 = +0.69% in 1 trading day
That works out to an average gain of .072% per lot per day invested. Almost 2x the daily return of the market historically, and all while SPY was losing .279% per day, on average. A good trade by any standard, a great trade given the market conditions overall.
ROST and I will be seeing each other again, I promise that.註釋
Trade results for my recordsLots traded = 6
Wins: 6
Losses: 0
Avg. gain per lot = +0.74%
Avg holding period per lot = 10.3 trading days
Avg gain per lot per day held = +0.072%
Annualized RoR = .072% x 252 = +18.1%
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。