I thought it would be a great idea to provide a bit of an update here, because I’ve been quiet for a little while in relation to my swing trading. Very simply, “oh boy, what a market!”. It looks like we’re well into a bear market and to be honest, I dont short stock, so finding positive swings is really difficult.
As a result I have been performing something called DCA on my stocks (dollar cost averaging). This is enabling me to keep my swings and for me to slowly drop the value I need to reach for them to achieve green again. Unfortunately, with the war in ukraine, and now the interest rising in the UK, alongside the Bank of England advising we’re heading to a recession, I dont see any particular stock I can focus on. Therefore I’m DCA’ing on all of my stocks in the red.
On a positive note, either through doing the above or out of pure dumb luck, I’m currently sitting with half my stock in green and half in red. The bad bit, is that my reds are quite bad, which means I havent followed that risk strategy of knowing when to take a loss. This is ok with me though, I want to DCA on them and I believe I have plenty of time to do that, which will maximise my gains if/when they return.
In the first four months of the year, I have had two positive swings. Therefore if we look at the amount invested vs the “realised return”, I am 2.56% in the green overall. I closed my NEL/D7G position last week with a 25% gain, because it looks like it’s forming a wedge and hitting the ceiling this time around. I am therefore waiting for it to drop to about 1.3 again (I think) and I’ll be buying back in, and I think it’ll raise back up to 1.4-1.5 next time. Watch this stock.
As always this is just my personal journal, not advice. You are entirely responsible for your own actions.