Sometimes the best position is no position . My Gameplan...We are in a confirmed downtrend now and I personally will eventually re-enter the market using the TQQQ . But regardless of your trading plan I think the main reason I decided to publish this one is to show that sometimes the best position is cash . I believe right now is one of those situations . I am now 95% cash .
I love the TQQQ , it out preforms most stocks and it is one of my first extensively back tested names. I like to back test manually using TV's chart replay function. In the case of the TQQQ , I have back tested several strategies dating all the way back to 2011, a lot of manual back testing and excel entries but I love it and its good muscle memory practice .
**With the TQQQ , you are betting on the market and not a company and it's a proven fact that the market likes to go up more than down :)
Essentially, my TQQQ strategy, that I favor, is to start attempting longs after we take back either the 50 MA or 10/21 ema's , with tight stops too . Furthermore, after a market correction that puts me in a cash position, when I get the correct signals, I will actually use my whole account to enter TQQQ. Then, if successful, sell half at 2R and follow the rest up with a trailing stop off the 21 ema . My scaling out system is simplistic and could probably be made more efficient but this is one of my most cherished strategies because it is truly my own and I model my swing trading after the same methodology. Obsviously , there are lots of very similar moving average systems that work pretty well worth looking into , mine is based quite a bit off Oliver Kell's " wedge pops/wedge drops . He is the winner of the 2020 investing championship btw, wrote a great book worth reading too with some savvy terms for his own terminology of chart events/signals.
But more to the point , I think that the TQQQ and or QQQ is a great tool for us to use to mange risk because when we lose the 21 Ema its time to get defensive and when we lose the 50 , even more so . This is for ALL our positions too, so even if you have no interest in trading the TQQQ , you can still use the market indexes to determine if you should be playing defense or maybe even going to cash. You should also know exactly what your risk management requires of you too with set rules written down and rehearsed for different market signals.
No one needs to know what will happen tomorrow to be a profitable trader , and picking a bottom is a risky business . So for me , ill wait for the market to tell me when it wants to potentially start a new uptrend and then I will pounce with a tight stop . If that doesn't work I will repeat and repeat and repeat , until it does work.
For me , what the QQQ and SPY are up to is the most important determining factor , everything else, like NEWS for example, is secondary and unnecessary for collecting profits or protecting your account . The most important thing , for me is what the market is telling us based on its moving averages and price structure .
I normally don't post my TQQQ entries but I have decided that coming out of this correction as I attempt to long TQQQ I will share.
For now , I will wait .
