Today I got once again caught up with a whipsaw.. I adjusted the RUT trade (perhaps over-adjusted?) and the market faded from the top. I was lucky that I didn't go overboard on the MNX position, it was nevertheless an adjustment that I could have lived without.
That led me into thinking about possible ways to avoid such scenarios. We want to make adjustments when we the market will continue its way moving against our positions, we want to avoid adjusting when the market fades back to "no movement" stage. The $1 Million dollar question is how do you know?!?!
I have started following two sites that I think provide an extra edge in determining the market sentiment: Vertical Solutions Forecasts and FinViz.com, they both gave me their permissions to post screenshots of their site on this blog, and I'll do so in order to capture the relationship between their information and the market action.. This might lead into a situation where adjusting can be done "IF" the sentiment is bullish and probabilities of over 1 st. deviation are confirmed.. Wouldn't that be awesome?!?!
Position's Details:
10/08 When to Adjust?
10/08 RUT Iron Butterfly
10/08 MNX Iron Butterfly
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment