First November 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.

As I noted on my Blog of October 31, IWM, MDY, QQQ and SPY all made a trade set up and confirmation at the same time. My first trade of choice, when there are multiple trade set ups is SPY. After closing SPY trade on October 31, QQQ was still indicating  a continuation of it’s trade set up. Therefore I entered a QQQ trade after closing SPY on October 31.

This is that trade.

October 31: Buy to open 50 QQQ at 117.11.
November 1: Bought 50 QQQ at 116.06.
November 2: Bought 100 QQQ at 115.06.
November 3: Bought 50 QQQ at 114.04.
November 4: Bought 50 QQQ at 113.69.
November 7: Sold to close 300 QQQ at 116.50.
Net Profit $ 386.00, ROI 7%.

Finally, this is the trade I have been looking for all year, finally, it’s about time! My net profit for the year is $386.53.

As noted in my trading manual, The 74% Solution, it is the occasional big winning trade that makes this system work.

While I was in this QQQ trade; trade set ups were also confirmed in IEV, IWM, SPY and XLK. These trades were not taken, of course, because I was fully committed to the QQQ trade.

Here is how those other trades would have potentially worked out if they had been taken.

IEV: 0.86 profit per share.
IWM: 0.74 profit per share.
SPY: 8.97 profit per share.
XLK: 1.88 profit per share.

As a note of caution, the QQQ trade set up was originally confirmed at the same time as the SPY trade. When I closed out the SPY trade on October 31, the QQQ trade was still in effect, so I took it and it worked out profitably. However if the QQQ trade had been taken instead of SPY, the QQQ trade would have been closed out for a loss, as per the trading system rules.

The moral of the story is, when multiple trades are confirmed, always take the one with the best consistent track record, and keep your trade positions small so that a loss does not materially affect your ability to continue trading.