Misjudgment and the learning curve.

Trading using the P&F charts in the manner that I am now involves some new ideas for me when it comes to holding positions and setting stops.


With regards to stop setting I need to move the stops according to my rules, generally move them $1 at a time when the price moves past the higher dollar or 50 cents if the price stalls and consolidates to preserve that 50cent per share previous move. Also set the stop to my target price shortly after it is crossed as I do not want to give back my target profit once achieved.


This first change in thinking and stop setting would have had me out of positions for a profit before Friday, not all, but at least two of my longs. Now I am selling them off at a loss instead.


This past employment report being so negative it has affected the general market enough to throw off some of my chart triggers and stops and make me consider tracking both the market and individual sectors on their own charts to co-ordinate long and short position entry depending on the correlation between the stock traded and the sector/market it is in.


More work.


Having said that I am treating this as a buying opportunity as some of my stocks have met their trigger prices due to this news and they may not have otherwise. I have two limit orders in now. None of my short targets are setting up as they have mostly dropped now. I'll likely have to give them a couple of days to return to normal. I'd hate to short a couple of stocks only to have them bounce through my stop.

I would liked to have been tracking P&F charts back when all this started in the initial downturn. I may go back and look at it in that timeframe just out of curiosity sometime.



Jeff.