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Carl Futia of CarlFutia.com Aug 29, 2008 Email this article to a Friend  Printer friendly page

I just sold my 200% long position at 1286 a few minutes ago. The market has dropped below 1286 as I write this on relatively high volume after trading sideways above that level for about an hour. I don't like this action because it makes yesterday look like a false breakout above the previous high at 1294 made on August 22. I'll take another look at things early Tuesday, but I am beginning to suspect that the move to 1250 I had been expecting a few days ago has begun. However, for the moment I have no position and no firm conviction about likely direction for the next few days. 

by Carl Futia (CarlFutia.com)

Disclaimer:

Please note that charts and commentary provided by the moderator are for educational purposes only. Any trades placed upon reliance on the moderator’s charts or information is taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward trading stocks, futures and options, there is also substantial risk of loss and you must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell stock, futures, options or commodity interests.

Most trading systems are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading stocks, futures, and options and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. Never risk more than 2-3% of your account on any one trade. Always define your risk before entering a trade and place a stop to limit your risk.

There are no guarantees or certainties in trading. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system’s draw downs. If you are looking for a guarantee, trading is probably not for you. Most people lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. Ironically, worrying about the monetary aspect of trading can contribute to and cause a trader to make trading errors. Therefore, it is important to only trade with true risk capital.