Renault

I started this positions some months ago, I read about the company, about the valuation and how things were running in the sector, so I decided to open a long position on it.

After some months with 3 long events the margin was so bad that was over the limit to the protection of my portfolio, so I short it with loss.

Bad move, let’s continue with the method and improving it.

 

 

Trade on Lyft

Abstract

  • Reason to Long = Fall after Q4 results. Results fine, forecast defensive.
  • Target = > 0,8% of long size.
  • Strategy: fall after Earning results. Use of 2 or 3 slots.

Table

Evolution

14/February: second long executed.

Outputs

Reason to Short = To be completed

How was short? = Sell order, Stop-loss order or stop-profit

Postmortem Analysis

 

The New Trading For a Living

This book written by Alexander Elder is a fantastic way to start learning trading.

I learn a lot from Systematic Trading about how to be systematic and how to manage your portfolio. But with this book I learn the different types of trading, how to focus on the behavior, how to build your own habits on specific papers, the importance of include the checklist on a daily basis, etc…

Don’t do it!!

Alexander is about 40 pages of the book persuading you to do not try it, he explains the different reasons trading is a risky and complex activity to be performed consistently along the time.

Risk management

  • rule of 2% for the maximum operations exposed by month.
  • Use risk exposure to handle your trades. The concept of “buying risk exposure” when you want to open more trades and you cannot do it.
  • rule of 6% for the maximum exposure of risk of your portfolio.
  • Understand how to adapt the use of slots and margins with respect the obtained results.

Classification of activities you have to do, how to engage general topics on your daily habits, how to socialize the trading with other people and learn from the previous data.

I pretend to be a Swing Trader

I learned reading the book that what I do is Swing Trading. My current scenarios are trades that can take hours, days or weeks, so now I know I want to become a swing trader.

This has enabled me to focus on how to organize the portfolio, how to divide the efforts on analysis, focus on specific tactics and measure the real results I obtain.

I have removed a lot of noise and wrong behaviors that did not help me on my duties.

The perfect trade

Alexander Elder in the book “The new Trading for a Living” comments that you have to know what are the type of trades you want to perform and what are these the perfect moves you are chasing.

So, here is the list of moves and data:

Moving average Crossover tactic:

Dividend King Stumble (tropezón de un rey del dividendo)

More to come when they are shown…