A recurring theme at "A Dash" has been the need for a systematic and disciplined approach. Formal trading systems and models are more readily tested than the records of individual traders.
Yesterday's article highlighting the TCA model and IGV, a software ETF, shows many facets of the modeling process. We thought that the recent IGV buy would provide a good example.
To our surprise, tonight's model run indicates that we should sell our position on the opening. (We continue to invite commentary on the IGV chart from technical experts.)
It is not our intention to provide market signals in real time, since we are not recommending specific trades. At "A Dash", we are trying to provide education, not investment advice. Most people who have not traded begin by thinking it is easy. They overrate their own "feel for the market." Seeing what is actually required is an important lesson -- and a cheap one at our prices!
Having said this, our whole team is uncomfortable with highlighting a sector and then selling it the next day. We expect to continue the series with a fresh example. We hope the new one will be closer to our average holding time of more than one month.
