Following the long doji the Dow put in last Thursday, we saw three consecutive up days. Then today's action constituted a shooting star, always an ominous bearish reversal sign. The RSI is indicating overbought and momentum is decreasing. In addition, money flow is again at levels associated with a top.
And although Asia closed mostly higher, the US futures are lower right now, though not by much. In addition, the euro/USD looks like it is putting in a short term top around 1.33. So all in all, I'm going to call tomorrow's close down from today, with fairly high confidence.
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Hey Michelle,
ReplyDeleteSaw ur post on Dr. Brett's blog and just had quick comment.
Basically, you don't just make a leap of faith and grow ur size 10 fold from 100 shares to 1000. Rather you do it gradually. If you're consistently profitable with 100 shares (and consistent depends on your style and timeframe), then try 200 shares at first. Get used to that. Then go to 300 once you're comfortable. Then try 500. As long as you're remaining profitable, keep increasing size gradually until you're trading where you want to be at.
Trying to make too large of a shift can be traumatizing as the P&L swings get exaggerated. However when you increase gradually you barely feel the difference. That's how I did it in my trading, going from 1 lots in ES trading initially to now usually trading 50 lots and at times as high as 100 lots. It's been a natural process and hasn't required much "faith". Only confidence in my trading and real results to back it up.
Hope that helps.
Ziad
Thanks for the comment, Ziad. You make an excellent point. It makes sense to build up to the big time incremetnally rather than go all in all at once.
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