First February Trade

The following information is for educational and entertainment purposes only. Rio Verde Trading and the author make no claim that anyone can or will achieve similar results in their trading.

February 4: Yesterday’s setup in QQQ was confirmed today. Bought to open 30 QQQ at 101.48.

February 5: Buy signal continues; bought 30 QQQ at 98.23.

February 8: Buy signal continues; bought 35 QQQ at 96.84.

February 9: Bought 35 QQQ at 96.39.

February 10: Sell signal has me selling to close 130 QQQ at 96.65.

Net Loss $-199.85, ROI -5.65%.

Another disappointing losing trade. As I closed out QQQ for a loss I also got a buy signal in SPY. I am now long 20 SPY. I Will report how this trade works out after I get the sell signal and close it out.

It is  six weeks into 2016 and the bear market has arrived. Historically the 74% Solution trading system has performed well in bear markets as bear markets generate more trades. January gave me 3 trades and 2 trades in February already.  The pick up in the pace of trades is encouraging. The increase in the number of trades along with an 80-90% probability of a trade closing with a profit, the probability of having a profitable trading year increases substantially.

Even though the trading system is under performing, my other investments are doing well. I have been anticipating a significant market correction, which appears to be happening now; therefore I have been short the S&P 500 for over a year, that trade is now in the money. The precious metals, gold & silver and the mining shares are doing well also. Many of my mining shares also pay a nice dividend, so that is a positive also. Even with the trading losses my portfolio is still profitable. This is the power of diversification.