First May 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.

29 April: Buy to open, at the open, 60 QQQ at 106.119.

29 April: Bought, at the close, an additional 60 QQQ at 105.78.

2 May: Sell signal, sold to close 120 QQQ at 106.65.

Net Profit $78.06, ROI 1.25%.

This trade demands a little explanation.

The potential trade setup occurred Wednesday April 27. However I was experiencing computer problems and had purchased a new computer with Windows 10. Thursday April 28 confirmed the trade setup, however I was still trying to transition to the new computer and so missed the trade, which I normally would have made at the close of April 28.

Friday morning, April 29, I had now gotten my new computer figured out and set up for trading. It is a part of The 74% Solution trading system that if you miss entering a trade at the close then it is OK to enter the next day at the open. I very rarely make a trade this way, especially if the market opens significantly higher from the previous days close.

I decided to enter this trade on the open for two reasons. First, the market opened down which gave me a much better price from the previous days close. Secondly, the Nasdaq 100 index, which QQQ tracks, had been indicating a trade since April 26, if one used the same setup criteria that I use for trading QQQ.

In other words, everything pointed to a strong trade. That is why I made two purchases on the same day, one at the open and one at the close. This would all probably make more sense if one has read the trading manual.

The gold and silver markets continue to perform and the mining shares are performing exceptionally well. This has done wonders for my brokerage account and has made it possible to increase the size of my trades. As recently as February I was only trading 30 shares of QQQ per day of trade, now I can tirade 60 shares.

All indications are that gold and silver bottomed in December 2015. A new precious metals bull market has begun. If you have any interest in gold and silver I refer you to the many gold and silver articles I link to on the Home page.

It is still not to late to buy gold and silver and the mining shares. Gold and silver for insurance against inflation and monetary debasement; the mining shares for speculation and investment. The mining shares are leveraged to the price of gold and silver. It has been amazing and fun to see gold and silver go up two, three, four percent and the mining shares go up eight, ten fifteen percent in one day.

Of course nothing goes up in a straight line. Expect corrections and retracements along the way, however this new bull market has several years to run. Enjoy the ride.