Well, I’ve been paying my tuition to the market. I believe I have a good investment plan in place and that the mechanical screen provides good investments for some position trades. However, my portfolio has been pounded. Sure the market is tough, but this hit to my account has been brutal.Today my stops were hit on FSYS (actually didn’t get out until the position was down over 12%) and IPHS (got out at a 9% loss).
Again I had to pull the trigger, myself, which cost me big time. Today FSYS is down over 13% and my position which was in the green at market open, lost 12% before I even logged on to my brokerage account. By the time I got out at 33.02 the damage had already been done.
The same old story was told for IPHS. IPHS dove this morning and before I even knew it, my position was below the stop point. I got out, but it cost me another percentage point. All in all, not having automatic stop losses in place cost me a percentage point on IPHS, 4% points on FSYS and 2% points on TRA. I’m not going to repeat the lesson I already learned earlier this week. Why beat a dead horse.
I know that this approach to trading is going to be very volatile and risky. But it is still testing and right now I am already to have my doubts.
Anyway, back to the position change. I sold FSYS and IPHS and left the rest in cash. I will hold it in cash until next cycle begins than put it back into the market.
I’ve certainly paid my share of the tuition to Mr. Market.
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I am an amateur trader and investor with over 15 years experience in the stock market. I was bred to be a fundamentalist and followed fundamental analysis until 2009. Following the 2007-2008 bear market, I began to shift from a buy-and-hold strategy to trend-following techniques.