445 Wins - 1 Loss The Secret To Trading

This was a tough month for many, the $RUT ended down 6% for the month and for the majority of the month we saw the SP500, DOW JONES, NASDAQ 100, NASDAQ all hover near 52 week highs while stocks underneath the surface were not participating, breadth was horrendous this month, we gave you the rundown here, these numbers only got worse.

In these type of markets people really get hurt and lose their confidence because they have not yet graduated to the stage where they realize and more importantly ACCEPT that their strategy will not work in all market conditions.  What happens is that some over trade and get chopped up and others look for a new strategy or the next secret trading  ingredient.   They go from blog to blog, new idea to new idea, strategy to strategy, searching for a system that will only give them winners without experiencing any draw-downs. A system that will catch every rip and every down tick on the minute chart.   This is especially the case after they go through a period in which they are struggling.  And due to world wide web you will find endless information on so called “proprietary list”, “proprietary indicator”, “buy green sell red, we have never missed a bottom or a top”, etc…  But until you realize that losing is part of the game, and that you are not going to make money day in and day out in all market conditions you will continue to search for the secret trading ingredient.  However, thanks to my son Max your search is done, we found the secret ingredient.

Skip to the 2:40 mark

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Zor Capital LLC is a New York based investment management firm, founded in 2011. Our goal is superior performance, with preservation of capital as our number one priority. Zor Capital manages separate accounts (both taxable and retirement) for accredited investors and institutions. This structure gives clients access to a hedge fund like strategy while maintaining 100% control of their accounts.  Managed Assets

In Case You Are Struggling This Month

This month it has been all about the indices, most individual stocks are not really participating in this recent up move.  Here are some stats:

• The Nasdaq started this month at 4408 with 67% of all stocks above their 20 day ma, today we are 4473 with only 41% of all stocks above their 20 day moving average.
• The Russell 3k etf $IWV started the month at $117.74 with 67% of the stocks within the Russell 3k above their 10 day ma, today we sit at $118.28 with only 41% of the stocks above their 10 day ma.
• The advance-decliners (NYSE+NASDAQ+AMEX) 10 day moving average is negative.
• We have more stocks down 13% in the last 34 days than up.
• My best swing trade barometer, my rolling 5 day watch-list has been dead.

This does not mean go out and short, if something is not bullish it doesn’t mean that it’s actionable in a bearish way.  It means that there is a time to be aggressive and there is a time to lay back as a swing trader.  You have to be aware of the current situation and accept it or you are going to chop yourself to pieces in this type of environment and kill your confidence.  So, if you are struggling to gain any traction this month, it is probably not all you unless you are the bearish type that wants to short every divergence.

As for me, I’m moving pawns around preserving my lead.

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Zor Capital LLC is a New York based investment management firm, founded in 2011. Our goal is superior performance, with preservation of capital as our number one priority. Zor Capital manages separate accounts (both taxable and retirement) for accredited investors and institutions. This structure gives clients access to a hedge fund like strategy while maintaining 100% control of their accounts.  Managed Assets