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Sunday, May 31, 2009

3% Rule

The last minute surge on Friday burn my shorts pretty bad.

If you have been reading my blog for a while, you surely know about the 3% rule.

Basically, support and resistance, IMHO, are not concrete numbers.

Most often there is a rise after broken support or a fall after broken resistance.

Add 3% to the resistance and subtract 3% from the support.

Think of it as squeezing the last drop out of a lemon.

My performance pales in comparison to some bloggers out there with 20%+ return for May. I just wish they have more transparency because I would love to follow.

Some of my picks for May with returns: CLF(9.91%). JASO (14.89%), NG (26.32%), AEM (20.79%).