New programming upload: One Day Reversals

It's been a while since my system has had new programming uploads. This one has been a long time coming to say the least. My trading profile has always been about breakouts and uptrends. For me, it's always so much easier to trade from strength to strength. 

But to focus on just your strengths is a mistake since you will leave a resource left untapped. And there is so much potential in bounce plays. This has been one of my goals this year. To try and assimilate bounce plays into my system. 

To do this, I went back to the charts. Reviewing past discussions and lessons. Analyzing where I went wrong and what held me back from execution. 

So I started with just paper trades here and there. A lot of mistakes were made and adjustments were in order. Some extra calibration was needed. Some more reps were needed. 

Finally, this past month I think I have successfully integrated and passed the one day reversal technique. Here are some of my results.

DD trade. Textbook one day reversal. 

APX trade. This one I was not able to maximize due to scheduling difficulties. But for me, the important piece was the execution. Never mind the lost profit because of the way it behaved after. 

That's one kind of bounce play that I can safely say is already in my arsenal. Here's to adding some more bounce weapons in the future.

Finding yourself

There is a thing called the rorschach or inkblot test. Humans are asked what they see in an abstract image. There are no right or wrong answers because it is actually a trick. Their answers reveal more about them then what is in the actual inkblot. 

Viewing charts could be the same way. Different people looking at the same chart would give different views. For example:

"looks expensive"

"BREAKOUT! ALL IN!"

"take profits"

"too bad. sold early"

"I'm not convinced, will wait another day"

"Can I still enter? Is it still safe to buy?"

Another example is this:

"avoid!"

"time to bodega"

"nowhere to go but up"

"I'm an investor and am waiting for future profits"

Two very simple charts. But it can give a wide variety of responses. And this is just a chart with MAs. What if you add in the different indicators? RSI, MACD, STOCHS, STS, FastK, etc. 

Mayhem. 

Analysis Paralysis.

This is why having a simple trading system can be beneficial. Less is more. Having set rules on buying/selling, strategies for the multiple trade scenarios. Having a trading plan is the key to success. 

Going back to the inkblot test and the charts, being able to identify your trading personality will help you to pinpoint make the necessary changes or upgrades to fix any deficiencies or weaknesses in your trading profile. Maybe you don't need an overhaul, just a few tweaking. 

But hey, this is all just the ramblings of a robot.