Hey Guys! Well, this week we're 7-0 as of right now. I only count trades that are closed in my win/loss record because until the trade is closed, you don't know for sure what will happen.
Most of those trades were open positions coming into the week. That means for the last two weeks, our closed trades had a 16-1 record. Woohoo!
That said, we're taking some heat on some of the trade alerts that were announced this week. DLR is down big and AMT is down pretty big too. One subscriber just asked me about this since he noticed that all but one of the alerts from this week were in the red so far. This was my response:
"It's definitely part of the game. For one thing, until the profit exit or stoploss or time limit is hit, it ain't over yet. MRVL was down a lot last week, and today it closed out for a small profit. I've had many times where my whole portfolio is down, only to change course. So this is definitely a patience game. And speaking of that, this might be a good test for you personally. This is, at the moment, not a big drawdown situation in the big scheme of things in my opinion. My account is down maybe 1.5% or so from the current portfolio of plays. So this might be a great experience for you to be going through, because it might give you information about how well you'll be able to handle drawdowns.
One other thing: these might indeed all end up being losses by the time an exit or time limit is hit from the trade alert. That would not be abnormal. Keep in mind that in back tests, the overall win rate was 57%. That means 43% of the time the trades lost in back tests. That's still a fair amount of losses, and the losses can definitely come in bunches.
One more note: it's earnings season, and that can cause some volatile price movements in individual stocks. DLR today, for example, is moving a lot against us. That's because they just reported earnings yesterday. I purposely got in on that trade because of the historical tendency of how those setups perform in back tests, but it can cause aggressive price movement in the wrong direction sometimes.
It's up to you what you decide to do with your positions, but in my case I'm definitely going to stick to the plan. I've gone through this before, so for me it's nothing new or different or weird to see most of my positions down on any given day. That's definitely par for the course and something I see with regularity."
Maybe that helps other members to see and understand. Trading with this service isn't going to be easy at times! But I'm here to support you in any way I can.
If you have any questions or feedback, I'd love to hear from you.