Focus More on These Three P's Prediction, Patience, Price

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Commentary

Another quarter is in the books for 2017, and now it's time to move to the final stretch for the year.  Looking back over the last 3 months, I could not have predicted that the markets and stocks would be where they are currently.  On several occasions, it felt like a correction of some sorts was in the making, but it never came to be.  As traders, it's easy to get sucked in to using economic data and sources like Zero Hedge to make justifications to buy or sell something.  Rarely do they actually help with sound decision making which is why removing them from your daily routine will help remove the urge to predict market movements. 

Patience is one of the hardest aspects to master in trading.  The lack of patience can generally be attributed to not having enough trading experience to truly understand your trading time frame. The other factors are one's liquidity levels and the position sizing metrics being used.  If you're trading your food, clothing, and shelter money, then there's a good chance the slightest downturn will result in a full blown portfolio liquidation.  Position size to ride your trends and set your stops accordingly.  From a personal perspective, risking between .5% to 1% per trade allows me to have patience with trades.

Finally, price will help keep you in the cockpit.  When the outside noise becomes too much, you can always come back to price.  Utilize moving averages, ATR, Bollinger Bands, etc. to rides trends and then when the price moves below the trailing stop, sell the position.  No need to worry about the Fed, consumer price index, new home sales, and so on.  

Position Summary

+4.86% MTD | +24.20% YTD

Open Positions

13 long

Watchlist

30 candidates

 

For the month of September, the portfolio is up about 4.86% and a little over 24% YTD.  The current semiconductor positions helped make a strong push this last week.  OLED has been on the sluggish side since re-entering the trade on 9/5.  Below are a handful of the current open positions.  

Watchlist Summary

As of today, 315 stocks are passing the main screen.  The list has steadily increased over the last few weeks, but still sits a bit shy of the high for the year.  Below are a few from the list.

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