I finally had a good trade. I bought the December 42 Puts for $0.50 and sold them for $0.75. I kept moving my stop order up as the put value increased and then got stopped out. Actually it appears the market center incorrectly filled my order as the stop should not have triggered, but as the put value dropped thereafter, I was okay with that.
This trade was fairly good for me on many levels. First, I followed the RSI (5) trading rules and secondly I was strict on using a stop to protect my position. For my last 4 trades I have put a stop on and all have been stopped out and only the last one for a gain. However, this is not a bad thing as it actually saved me money by not getting bigger losses on the 3 previously stop outs. Looking for another short now as I missed the last buy signal. The Q's are at $41.85 right now and RSI (5) is at 75. Looking for a 76 RSI value and then a cross of the price line with the SMA (2) to go short.
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