- I bought it at 1:30 PM, while my normal time is 3:30 PM. I was too impatient and could have gotten a slightly better price.
- I also bought it before it got really oversold. The indicators had barely gone in oversold territory. The point of this strategy is to buy ETFs that are in an uptrend and really oversold. I was too impatient to get in the trade.
- This ETF was not really in an uptrend on 1/19. It was easy to see but I ignored this fact, because I believed that this dip was like all other dips before it.
- But especially, on 1/24 EZA did bounce, as expected, only not as high as I had hoped. I should have taken my loss there. To be fair, I did stick to my declared exit strategy. But from then on, I stayed in the trade without knowing what to do next. That was the point to cut losses and move on. I told myself I was waiting for RSI(2) > 80 and RSI(4) > 60 and %B(20) > 0.4, but really, I did not know what was going to happen next.
- One thing I did well was not to panic at the end of January when EZA went down to 65. At that point it was outside of the envelope and at least I was able to wait until it reverted close to its average.
Notes about market technical analysis. These are just my investment or trading notes - NOT investment advice.
Tuesday, February 8, 2011
Sold EZA @ 67.40
Two weeks ago I bought EZA at 69.50, and today I finally sold it at 67.40. I have learned a few things from this trade.
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