Tip From the Geek Recap – October Trading Tips Summary

October Frustrating for the Geek

Trading last month was very tricky.  The major markets entered a consolidation period, one that is leading up to the current election. My results for the month are basically average, meaning I almost broke even. I had a number of losses centered on the S&P and The Dow, two indexes I was sure were heading up.  I still stand by my analysis of another leg up, it just didn’t happen in October.

I was a little more successful overseas.  The markets trended higher during the month but sold off towards the end. Some of my trades in the FTSE, the DAX and the Ibex were very close calls. The Euro/USD trade was where I found the most success, winning three out of four.

I also did well with US equities.  I made a total of six trades of US based companies and won three of them. I must admit that I made a couple of trades in Apple and got burned on both of them. All in all I made 24 trades in the month of October with a win/loss ration of 11 : 13, or 46%.

The total cost of all trades made was $2400.  My returns, including rebates on losing trades (these are not available with every platform) totaled $2065, or approximately 86% of investment. That’s what sucks, making a loss. In total, for the month of October, I lost $335 or 14% of my investment.  As far as the account goes this only a drop in the bucket, less than 1%. I will keep on trading, next month should be good one.

US Markets Hit Resistance And Consolidated

I made a total of seven trades on US indexes, primarily the S&P.  Of them all, seven were losers. I was not prepared for the October volatility. 

Dow : I made two trades on the Dow, both calls for the index to close higher than 13,500 and 13,550.  Needless to say the index closed much lower than that and these trades failed.

S&P 500 : This is the index that I most closely follow.  I was expecting some weakness but I didn’t think it would be so soon.  I made four trades of the S&P and lost all four.

Nasdaq : I usually don’t trade the Comp because of the volatility and I shouldn’t have started last month. I made one trade on this index and lost it.

I Was Timid In Asia, I Should Have Done More

I shied away from Asia this month and I couldn’t tell you why at this point.  Looking back on it I should have traded it more.

Heng Seng : I traded the Heng Seng twice last month and won both of them.  Chinese data was supporting a rebound in their economy but the new revisions may send the index back down in the coming weeks.

Europe, Good Trades This Month

Most of my wins this month were centered on Europe.  The work, or seeming work, that is being done on debt issues in the region helped to keep a positive bias on the indexes for the month.

FTSE : The FTSE is the broadest of the European indexes I follow and the one I traded the most. I bought three calls on the index and won one of them.

DAX : I traded Germany once in the month of October and won it. The German economy, though strong, is still tied to the Eurozone, a fact that is causing a lot of the current problems with policy and fiscal solutions.

IBEX : The Spanish Ibex has been giving a lot of opportunity to trade calls and puts although I only got into this one once last month, a call and a win.

Eur/USD : One of my favorite binary trading vehicles and one that I usually trade short and long term options.  I recommended this trade four times in the month and 3 of them paid off for me.

US Equities, Easy Come Easy Go

I traded more heavily in US equities than I have in past moths.  The opportunity was there for profiting on a stock by stock basis. Some went well and others not so much. Apple remains a thorn in my side.

Apple : I just can’t stay away, I think the potential for regular gains on this stock are there.  I traded it twice last month and came away with a loss both times.  Not to worry though, I will get my bite out of Apple.

MCD, INTC and GS : McDonald’s, Intel and Goldman Sachs all paid off for me.   Earnings and technical trends pointed the way and the market followed.

Exxon : The oil giant reported profits below expectations and that hurt my trade.  The stock is still going up, it just took a beating before making the move and that kept my trade in negative territory.