This year has been different for the Market Direction Portfolio. Trades that I have entered at what I have chosen as suitable entry points have ended up being stopped out. The stops I have used are becoming tighter to fight against the volatility which in January has been consistently the highest since 2012. The daily whipsaws have kept investors on edge.
This has meant numerous trades in the market direction portfolio and a number of losses. Luckily the tight stops have controlled losses. Despite this and despite days when I have had to do a number of trades intraday, the market direction portfolio is up 7.8% for the first three weeks of the year.
Volatility Is Declining
One thing the market direction portfolio clearly shows is that volatility is beginning to decline. Members can see this in the trade table. For example reviewing the Jan 9 trades members can see there were 11 trades that day. This is the most trades I have done in the market direction portfolio ever. On Jan 13, 9 trades were done, Since then members can see the decline in the number of daily trades as volatility on Friday briefly fell below $16 as measured on the VIX Index. That has been the lowest reading since the start of the year.
Learning From The Market Direction Portfolio
All investors can gain knowledge from review the market direction portfolio trades on a daily basis. For example, earlier this month it was obvious looking at the trade table that the volatility was climbing. There were days when the Market Direction Portfolio was trading both the SDOW which is a short ETF and the UDOW which is a long ETF. This is the result of large whipsaws in the market which is more common in aging bull markets and in those markets at the start of laying the ground work for a coming bear market. Just taking a few minutes to look at the trades can advise investors to move cash aside and stay cautious. When the Market Direction Portfolio is beginning to take losses investors know that the trend is uncertain and becoming volatile. A great deal can be learned from just a quick daily review of the market direction portfolio.
Updated To Friday Jan 23 2015
The market direction portfolio is now updated to Jan 23 2015 at the close of the day. The trades are interesting to review, especially the trades of Jan 9, 13 and two different trades on Jan 15. The best way to learn how to invest is to review past trades and determine what worked and what failed.
Market Direction Portfolio for 2015 Trade Table
The trade tables in use this year are laid out a bit differently. Each trade is in a separate table. To review the entire trade from start to finish including all comments, entry positions, stop-loss adjustments, rescues if needed along with exits look below the trade for the list of articles that relate to the trade. They are found under the heading “Review Related Trade Articles”
Active trades are highlighted in yellow while trades that have ended are in red. All financial aspects are outlined in the table and the trade details are listed by date along with the outcome of the trade. The Capital Used always lists the largest amount of capital that was at risk. The return is calculated against the largest amount of capital that was at risk for the trade.
Market Direction Portfolio Table Keys
FullyInformed USA Members can can read the latest updates to the Market Direction Portfolio trades for 2015 directly through this link or they can sign in to the full site here. Non-members can join here or read about the benefits of a membership.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
Internal Market Direction Portfolio Links
Understanding The Market Direction Portfolio – Good Place To Start
Market Direction Portfolio Articles Listing
Market Direction Portfolio Trades for 2015
Market Durection Portfolio Trades for 2014
Market Direction Portfolio Trades for 2013
Market Direction Portfolio Trades for 2012 –
Profiting From Understanding Market Direction (Articles Index)
Understanding Short-Term Signals