Why did I buy GUSH at an overbought spot and top of the bollingerbands?
I could have bought soxl etf when it was oversold, instead I entered gush at $79.95. The reasoning is quite simple as you should know by now, I keep my trading simple because I like to keep life simple. One reason is the hourly chart broke out, even though it pulled back after my purchase I know why I bought it. I plan to hold throughout this summer. With uso price and chart comparing other sectors like smh, QQQ I like the potential on the monthly chart. This has a lot of room to run and if it does not break $100 soon, I would be surprised. My goal in this swing trade is like all others, make money. This could easily drop back down to the $57 range beforehand, if that happens then I double down to lower my cost basis. My plan is if this goes lower, I am not adding till $55 area, of course that could always change.
Making money on a swing trade is not always easy, it takes patience and sometimes multiple entries to lower your cost basis. If emotions get the best of you and you sell instead of building a better position you will have a lot of losses add up. Have a plan before you enter. Know your charts, your industry, an entry plan, exit plan and when you plan on averaging lower if needed. It is not about just trading a chart but managing your trades. For instance, if you bought smh or soxl and it dropped add to your position to lower your average. Have patience to make money even if it takes months or years. Taking a loss and move to the next one ends up racking up a lot of losses. Keep life simple along with your trading and account management. If you are having problems learning to manage your trades, then just invest in mutual funds or etf’s and let the pro’s handle it for a fee.
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