ETF Trading Research 6/19/2018
Great day overall except for DGAZ, but at least I cut the cord on it and will be back in it again in a heartbeat lower I hope. Still have same goal. I just saw some weakness in it and decided on this great day of returns to take the loss rather than ride lower. Now we can add the future gains on either side and not be “stuck.” Hedged metals and miners end of day again to hopefully profit and also act as insurance to reduce risk. Still think we go much higher, obviously.
I did a podcast today with Brian Bain with a continuation of analysis of where I think gold and silver will go short and long term. I will post a link when it becomes available.
Goal of 35% by month end for closed trades since 6/7.
5.32% on 6/8.
0.81% on 6/11.
0.79% on 6/13
0.26% on 6/14
7.79% on 6/15
7.01% on 6/18
10.12% on 6/19 but added the DGAZ loss of -12.44% to give us a total of -2.32%
15.35% left to go. Still have 11 days! We’ll get there! and do even better I think. Notice I am keeping tighter stops. Also taking profit quicker. Not afraid to re-enter either. Some small commissions to pay when you have a chance at bigger rewards with the right setup. Also reducing risk by going home flat more.
Shows you what not keeping a stop does to your returns. See Golden Rules for Losing Traders below.
Economic Data For Tomorrow
http://www.investing.com/economic-calendar/
These are the ETFs that have turned green on the weekly and show a trend has developed. Your best way to profit with the service is stick with the green weekly trend each day and take profit while using a trailing stops. Also, if these green ETFs are up for the day at the open, they offer the best scalping opportunities. I am always fine tuning this section so if there is confusion at all, email me and be specific and I’ll be happy address.
I know I have said this many times but it is worth repeating; If you stick with the green weekly trades your odds of profit increase as there is more risk with the day trades. I call the day trades with the intent of catching some runners, so will get a few 1% stop outs but eventually catch the 5% to 10% or more runners. The important part of the list below is that the longer the ETF stays on the list the more likely it is to turn red on the weekly and the opposite ETF comes into play as a long. This will be tracked more when we automate the service.
Sell half shares on a spike up on any ETF you are long, even if goal is higher. Spikes higher are almost always followed by moves in the opposite direction. Try and get out with a market order quickly before the quick move back lower. Lock in that profit!
New way to trade beaten down ETFs; The way that trade would work, and I really think it should be a rule from now on NOT to trade anything trending down until it reverses, is we would buy at the open if it is POSITIVE or GOES POSITIVE during the day. Then we would look to profit on 1/2 shares over and over, day after day until we get the red weekly signal on the opposite trade that could turn into bigger profits. The stop would be if it goes negative for the day. The rule of keeping a stop if it goes negative for the day is a must. Lastly for this type of trading we need to not be afraid to get back in if it goes positive once again. Sometimes market makers will take an ETF negative and then reverse it right higher again because they know if it goes negative many exit. So we have to be willing to risk a few in and outs when it does this up and down move around that potential stop out area so we don’t miss the ride back up. That’s just part of trading and not a big deal. But no matter what, if it breaks to yet another lower low because you didn’t get out after giving it a little more wiggle room, you are more than likely further from the original stop out when it went negative and you are out, waiting for it to go positive again before you get back in. You are simply buying into strength.
For those of you new here, I most of the time have the ETF Trading Research report out by 8PM PDT, and it comes by an RSS feed, but you can look at the report here sometimes before you get it in your mailbox; https://illusionsofwealth.com/category/etf-blogs/ This is also the same link if there are any technical difficulties.
