Friday, 9 December 2011

   Nothing to post today still with my long position in TZA at $28.00, the Russell 2000 small cap, Direxion leveraged 3x etf. The financial markets are showing a bearish short term view, however, should move to higher ground till the 3rd week in January, but the end of the year is showing a pivot point as well, I will have to see how things pan out, too early to tell. The stock markets are showing strength today in Europe but should not last too long going into next week. The next pivot point is slated for December 15th, remember, I trade the leveraged Russell 2000 3x Direxion ETF, I don't trade individual stocks, I swing trade the Russell  index,  a small cap index that trades in the same direction as all other financial markets (all one market theory Bob Prechter). The Russell 2000 Index is a good index to trade because it is somewhat more volatile than other index's, and that means more money, but also means more risk. You have to trade the Russell 2000 index accordingly with stops in place and select your pivot points accordingly. I have the model that forecasts pivot points in the financial markets and the Russell 2000 leveraged 3x ETF is the perfect vehicle. Sometime in the future I might get a small options account and trade options on the index's, we'll see. Another vehicle that is super volatile with even more risk and a chance to make even more money is the currency market (FOREX). The fx market in my own opinion is going to get even more volatile in the future and that is a good thing if your on the right side of the market. My model shows money flow and money is flowing from one sector to another all the time. I am rambling on so  I will end this post for now, remember rule #1, conservation of cash when trading the financial markets.
   I am sharing the trades that I make in the financial markets with you, don't do what I am doing unless you have some experience with trading, and have money to risk. If you're wondering why I am posting such valuable information? It's selfish, these posts are my diary and helps me trade better, think of it as a contract that has to be fulfilled. One thing that is true but unexplainable is the fact that a forecast could be 100% correct, all the time,  trade after trade and a speculator can still lose money, that is the power of trading with the herd. It is not you against the market, it is you against yourself. To make a long story short my posts are for entertainment purposes only.

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