I am down $3,000 since inception, and am frustrated that I cannot seem to make money on trades. It is somewhat reassuring to read that it takes most people two to five years to learn to trade and that they will likely lose money during this learning period. I just got a $39.99 rebate from TOS because I have made 40 trades since opening the account. Today I am going to try something a little different. Only look at trading one name for now. Use dual time frame momentum reversal tool. Explore various studies to see how they all work and which work best for this name. Limit trading to one trade per day or two. Keep at it until I have been able to make money on this one name. Meanwhile, explore the fundamentals to see what helps most.
The name I picked is Chevron (CVX), which is in an uptrend since a low of 66.83 on 7/1/10 to a recent high of 85.79 on 10/25/10, a gain of 28%. The S&P 500 (spx) over the same period is up by 17% (1027 on 7/1 to 1198 on 11/3/10, a new high. Apples to apples, CVX to its latest, to match the time for SPX, is up 23% to 81.89. So modest outperformance relative to the market.
Why CVX? I used the TOS watchlist for New Yearly Highs. Oddly, it did not seem to use the latest daily closes for this list. I emailed TOS for an explanation.
The major trend is up. The short term trend is down, but no signal to enter. The entry point signal using low price was back on 11/1/10. Overnight the stock is up sharply from 81.89 to 84.37 in premarket. Rules say do not chase. Waiting for a pull back.
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