Tip From the Geek Recap – November Trading Tips Summary
November was a nervous month for me. Although most of my trades for the month were winners the middle two weeks of the month had me questioning my own analysis. I know losses will come but I don’t like it. I traded short term options for the most part last month. The volatility caused by poor profits, US elections, Fiscal Cliff worries, economic data and Eurozone debt issues made for a month of knee jerk reactions which left the markets oversold. I am still trading based on my previous analysis. I am looking for a near term uptrend but am cautious in the longer term. The long term bull trend is weakening and next years outlook is not one to inspire a lot of investing.
As for last month, trading was good. I made a total of 20 recommendations with only two of them left untriggered. Of the remaining 18 trades 15 were winners, returning an average of 170% of investment. The three losers each returned my standard $15 (I am trading lots of $100 per recommendation). In total, I spent $1800 buying options and returned a total of $2595 for a net profit of $795. That is over 44% profit and many of these trades were open for 4 days or less!
The S&P 500
The S&P 500 is my standard trading vehicle. It is what I trade on the US market and it is my number one recommended trade on a week to week basis. In November I recommended it 4 times and came out a winner 3 out of four times. I made two trades with monthly closing and two with weekly. Total investment of $400 returned $125, or 31.2%, in profits. Trading in this index was choppy at best for the month, I thought my early trades were not going to profit but in the end the rally picked up again and caught the the markets before breaking the long term trend.
I traded technology and the Nasdaq once last month for a nice win. Once the support bounce began during the Thanksgiving week the index looked good for a short term trade and a quick return. This index made some of the biggest declines last month and could make some of the biggest gains in December while the markets are rebounding.
Moving into Europe I like to trade the FTSE and the Eur/USD. I traded the FTSE 3 times last month and came out on top all three times. Total investment was $300 and returns totaled $510 for a net profit of 70%. As for the EUR/USD trade, I only traded it once. It had been consolidating after the early fall run up and I was not ready to get back in. I did take one early signal and it paid off by the skin of its chin. This month this trade looks good for another leg up to resistance.
In Asia I traded the Heng Seng and the Nikkei in November. The Heng Seng was moving upward and testing resistance allowing me to get in twice and rack up two wins. Now it looks like the index is topping and could move down over the next month or more. The Nikkei trade was kind of an after thought. The Japanese markets were getting lifted by the yen’s slide versus the dollar, another trade I like, and I tried to jump on board. I recommended this one twice but was only able to get in once but it paid off with a nice 71% return on investment.
The JPY/USD trade was my top trade for the month. I recommended it four times, once each week, and picked a winner each time. The country is blatantly printing money and preparing to print more in order to devalue the yen. The efforts to stimulate the country’s economy have been mounting over the last few months and the stock market has at least begun to respond. I think this move is only half done at best and will be looking for more upside in the next month or two.
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