VLO

I don’t remember why I didn’t sell VLO…. may be the following reasons:

1. It belongs to the Energy Industry
2. Its most recent top exceeded the previous top
3. I don’t feel comfortable

If I go strictly by rules, I should have sold it… because its monthly candle is down and the price was right. So, why did I pass it?

Closed out PGR

… at a loss of $45. That’s fine…. at least I anticipated that…. … somehow, somewhere in my subconscious, I know something will go wrong….. somewhere in my subconscious…. Call it intuition…..

Let My Intuition Take Charge

I’ve yet to find a mechanical way to filter out the wrong signals. But I know it’s somewhere in my subconscious. I felt ‘uneasy’ when I opened those losing positions. I know there is a reason for that, but I can’t really pin it down. Maybe it is because the monthly candle is up, but I can’t afford to filter out all such trades, cause that contradicts the logic behind this strategy. Anyway, the best I can ‘mechanicalize’ it is the following:

1. Look out for danger Signs (Doji/hesitation on high volume, Engulfing 10% etc, double bottom etc)
2. The MA should be sloping downwards (at least 10% below peak)
3. Stock should preferably hit strong resistance/prior support (look back 3 years)