Although all the signals around me were down, I had to stick to my guns for the sake of consistent data. I accepted the single reading offered at 3:45 – which pointed up.
However, while learning how to read the new calculator, I may have discovered a better approach to the daily reading. I will test this strategy in the coming days and weeks.
Although I’m not surprised by the down morning, I still have to deal with the Calls I purchased from the reading yesterday. It’s all about management.
The goal is to maximize your up days and minimize your down days.
I will place 15-20% stops behind the bid with the hope the market recovers a little so I can sell at a better price than the open.
If I don’t stop out or land on a satisfactory price during the day, I’ll wait for the evening reading for October 16th. If the reading points down I’ll sell the Calls and buy Puts. If the reading is up, I’ll keep my Calls and possibly purchase a few more for the next day.
This strategy kept me in the game when my old calculator started to falter with the deep negative pressure readings.
It’s not easy losing money, however, it’s part of the process of making money in the options market.