Well Folks, we're in the middle of an undisputed profit cycle!
I closed 5 positions this morning, all for a profit. That gives me a 30-3 record for my last 33 trades. I'm just following the back-tested trading strategies, and it's paying off big time right now. This is not typical -- normally there are plenty of losses sprinkled in along the way. That said, in back tests, there are certainly profit cycles like this and interestingly although the profit cycles may in many cases not last very long, they often do most of the heavy lifting on driving the annual profit. That's why I always say that to me, this is a long term game. To benefit from the potential profit cycles I have to live through the risk-filled periods of wash and loss.
And I talked about gap risk the other day. Well we had the good kind of gap happen last night on that Cisco option! Cisco gapped up, and the option I bought for $0.42 sold for $1.40 this morning. That's a 233% return on investment for that one. And I noticed that two minutes after I sold it the price shot up to $1.80+, so I'm hoping some of you guys got an even juicier profit than me.
I picked up some KSU this morning. I'm just waiting to see if more trades set up. I simply use the Watch List and I get in if any of the tickers hit the potential entry price specified.