Do you ever have moments when you question your trading strategy? I am certainly having one of those moments today. Actually, I had the same thought yesterday, but today it is more intense.
As I have been writing, the fuel-cell technology market is booming, at least the markets I am trading are going crazy. Normally, I trade up and down on percentages. That is the plan I have been using for quite some time and it has worked well for me. Now, here is my problem.
I don’t understand what is happening, but ever since Russia threatened Ukraine, my fuel-cell trading stocks have gone nuts. I mean really nuts. The last few days, some are up 25-40% daily. Today, three of them have rolled back to less than 5% up, but one other is up some 15%, and this with the market leaning to the downside.
I have used my strategy, and it has worked, meaning I have made my money, but the problem is my percentages are too low for these crazy upside swings. In other words, even though I have made my solid gains, I could have made bunches more had I dropped my strategy and trusted stocks that in the past have not been so trustworthy when it comes to huge gains. Usually, they run up high and roll back far, but in the last few days, market up or market down, they seem to be settling in at the higher prices.
So now, my predicament is: Do I get back in at the excessively higher prices or do I wait for the stock to roll back quite a bit as they have done in the past?
Anyway, I have to get back to work thinking about this and the reality of the overall market. It and I have some digesting to do. Russia is backing down slowly and the economic data coming in from across the globe is still a mixed bag. Europe is economically improving, China is announcing new reforms, and the US is going up and down on the economic numbers.
I have lots to do today, for sure.
Trade in the day; Invest in your life …
