Portfolio Update

Another day has past and no change to my portfolio has occurred other than the slight drop in value for my position on V. Time will tell if the choice was good or bad. We will just have to see how things turn out.

In my last post, I mentioned that I resubmitted my order for TLT as I considered it the better of the two choices I had prior. In my opinion TLT was and still is, but unfortunately the strength of the bulls this past trading day forced it to open higher than I expected and, although today was a bearish day, it didn't drop in price enough to trigger my order. Either that or my online brokerage firm is trying to protect me from a trade violation. Whatever the reason, the price for the option is currently to rich for me. I could, however, still get involved in T as the recent movement has kept it in favorable price levels. But, I think I will heed the warnings from my online brokerage account this time, and leave it be.

The possible reasons for my past few failed entry orders is also causing me to re-evaluate my stop-limit strategy some. Maybe I should widen the range. Possibly take the option price I calculate as my stop price and, instead of just adding the necessary interval to set my limit price, also subtract the necessary interval and use that result as the stop price. For example, the calculated value my TLT orders that failed was 3.20 and all I did was add the .10 that my online brokerage firm required of me to set my limit of 3.30. With this adjustment to strategy I would be setting the stop to 3.10 (3.20-.10) and the limit to 3.30 (3.20+.10).

My reason for thinking this is that it may be possible that the window is too small for the amount of market demand and I am being left behind. In the training I took, it was suggested to set limit orders at the asking price and then set the stop after it had been filled. Like many people just getting into the "trading game" I don't have the luxury of being able to watch the market every minute of the day. And if I use my OTO method with a limit instead of at a stop-limit, I could end up waisting money, and the necessary time for the funds to settle, on trades I should never have gotten into. My way, currently, is the better way for me. I will consider the adjustment of strategy while I wait for my funds to settle. That is my opinion, you can take it or leave it.

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