Replies to post #37972 on 22nd Century Group Inc (XXII)

[Lnp30]

My fav is when they post the charts and they say well it could go up to here or down to here.

THANKS!

[BlakGold]

I've made much more money as a day/swing trader operating on Level II tape reading and VWAP than trading on technical patterns, but I do appreciate a good little backward-looking technical analysis, like a postgame report after the closing bell.

[Sendme]

All very good points made. I honestly have wondered the same thing about investing vs trading the patterns. So I finally took the time to compare the two. I went back to Aug 2015 when it hit bottom and assumed one was able to buy the exact bottom at .56 from the investment point of view and the other was to wait for a pattern break to start the pattern trading at .93

This is all in fun and in a perfect world I know. But not the less I was curious how it would end up as well.

I also believe that it is ok to Invest and hold a core position and then using a basic strategy like the one I used for example, to trade some shares on the side.

The one thing about taking the profits at the desired targets, is that it may help prevent staying in too long and getting a major sell off. All of my patterns show a stop loss as well.

Starting with an initial investment of $10000 and an entry at .56
today would be worth $60,892 over 25 months/or $2,435 per month


Compared to if you would have waited for a pattern break and started the initial entry at .93 with $10,000 and exit at 1.64
First trade
In at .93
Out at 1.64
total $17,526 for 3 months

Second trade start with $17,526
In at 1.09
Out at 1.67
total now $26,851 for 2 months

Third trade start with $26,851
In at 1.39
Out at 2.37
total now at $45,781 for 5 months

Fourth trade start at $45,781 (shown on previous chart)
In at 1.80
Out at 2.74
total now at $69,688 for 1 month

Fifth trade start at $69,688 (also on previous chart)
In at 2.25
Out at 3.33
total now at $103,313 for 1 month

total time with funds tied up was aprox 12 months for an average of $8,609 per month












Of course you need to have the liquidity and high volume to start trading higher dollar amounts.

If you would have only used $10,000 for each of the 5 trades the total profit over the two years would have been $29,918 for 12 months of actual trading time or $2,493

If you would have bought and held for the 25 months you would have $50,892 in actual profit ($10,000 was initial investment) or about $2,035 per month.

Six of one half a dozen of another.

Have a great weekend.