Wednesday, December 12, 2007

ONXX- Slow

Had a loser today but it was less than 1R because I was moving my stop up slowly as it was gaining in price. Only down side was that I moved my stop right onto a support level and once I got stopped out finally, it rallied right after lol. I need to keep an eye on that.


After I got stopped out I wanted to see if I could spot a pattern between what the market conditions are like and my winners. I found that when the VIX is up I usually have more success and when the VIX is down I have some losses. To me, when the VIX is increasing implies that people are afraid of losing money and when the VIX is up implies that people are afraid of missing out on money. The latter is what I'm looking for which is the driving force of my momentum stocks. So I'll be making it a rule now to only trade when the VIX is up at least 2-3% but ideally around 4-5%. I'll see what kind of performance I yield with that new rule.


So back to ONXX I got in at 56.97 with my initial stop at 56.25 Once I got in it started to move and pulled back a little but I felt ok with it and let it ride out. Started moving up again and I had a feeling it might reverse right under that resistance level and it did but I still held on because I felt that the buyers were all over this. Plus it wasn't at my 2% target yet. On a side note, I also noticed that support and resistance are so much more effective when the VIX is down. Anyway, it reversed and I let it go all the back down to my stop and got out at 56.50


onxx trade chart 2

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