Folks,
I think some of you might have bought UPRO/TQQQ because I did it. I sold most at the close on Friday because we reclaimed the mean (21 day EMA) and my goal was mean reversion. I set my stop on the remainder at yesterday's opening price. That's the $36 area on UPRO.
Every pro trader I know scales out on profits and moves their stops up. This is the type of trade to not let turn red. You'll be pissed at yourself if this comes all the way back down. I bought small in the 35s, bought big in the 32s and scaled out at 35, 37, and 38.5. 20%+ on an index trade is pretty darn good. Don't forget that there's a gap below in addition to above. Anyway, it's important to recognize when R/R is less in your favor.
Some tactics you can take:
I think some of you might have bought UPRO/TQQQ because I did it. I sold most at the close on Friday because we reclaimed the mean (21 day EMA) and my goal was mean reversion. I set my stop on the remainder at yesterday's opening price. That's the $36 area on UPRO.
Every pro trader I know scales out on profits and moves their stops up. This is the type of trade to not let turn red. You'll be pissed at yourself if this comes all the way back down. I bought small in the 35s, bought big in the 32s and scaled out at 35, 37, and 38.5. 20%+ on an index trade is pretty darn good. Don't forget that there's a gap below in addition to above. Anyway, it's important to recognize when R/R is less in your favor.
Some tactics you can take:
- Sell at least some when RSI becomes overbought and the price is well above the mean
- Rebuy trading shares on dips to retouch the mean (think 30 min / 60 min timeframes)
- Keep full lot and move stop to be the 30/60 minute mean. This is the most aggressive and while you can catch the entirety of a big move, maybe, you also run the risk of giving up a bunch of gains. I don't really do this except for small runners most of the time
You don’t trade for money, you trade for freedom.
