When a man imagines, even after years of striving, that he has attained perfection, his decline begins. Theodore Martin
The focus of this post is on the subject of building a Trading Strategy – and the realization that it is a constant work-in-progress. That’s right, you can’t just build it and then it turn it loose. You have to cultivate your process, make appropriate adjustments, pay attention to the pieces that are not working well.
I make the effort each Wednesday to do a quick review of how the week is going with my trading efforts. One adjustment that I have made is in my Price Alert setting. I will use SPRD as my example because my stalking of it forced me to realize that my process had some flaws – some flaws that would have caused me to miss a nice bounce.
If you follow me you know that I use the word Stalk a lot. It is an important component to my trading as I believe it gives me a better feel for the stock (even the whippy ones). I was watching SPRD last week just melt into oblivion and felt that at some point it would get really overdone. Since I can’t watch a particular every second, I let the computer do some work for me by setting Price Alerts. The flaw in my system however is in the basic structure for my alert range, a single range can’t be applied to every stock or situation. Set too wide and it could be weeks before it triggers. Set too narrow and you find yourself resetting it numerous times every day and missing opportunities.
With this in mind, the adjustment that I have made is to now record a comment in my Trading Journal as to what type of Price Alert range I should set on stocks that are under real pressure. A small little tune-up keeps things running smooth – as much as possible.