Windowsill
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Long Pru today & looking at int power, Hanson & BG.
'morning all,
Thanks Jon for your illuminating post re banks/results. Like you, I try to avoid trading across results announcements. My trading methods are based on various chart indicators. I consider that these indicators are simply methods of revealing underlying market sentiment/psychology towards an instrument and how it's changing. Short term, I'm sure we all agree that it is sentiment that drives prices.
The trouble with results announcements is that, unless you have inside knowledge, they are not predictable. A second compounding factor, is that it can also be difficult to predict how the market will react to a particular announcement. My recent error with ULVR was a classic example: I waited for the results, they seemed pretty poor to me (hence I shorted in the face of what I thought was a temporary rise), yet the market treated them positively! I don't think this was just me misinterpreting the results as there also seemed to be disagreement between commentators.
These factors mean that I don't see how charting techniques can work across announcements. Hence, I believe that trading across the announcement is more akin to gambling than professional trading. I do think, however, that with more experience and "City knowledge" than I have it may be possible to make money by predicting how the market will react to an announcement once it comes out. As I understand it, TheArb (who is a city insider) bases his trading strategy on this.
Enough of the theory! Short BOOT @ 595.5 this morning.
Current position: long TATE, short FP, SPW and BOOT.
Good trading,
Mark
Thanks Jon for your illuminating post re banks/results. Like you, I try to avoid trading across results announcements. My trading methods are based on various chart indicators. I consider that these indicators are simply methods of revealing underlying market sentiment/psychology towards an instrument and how it's changing. Short term, I'm sure we all agree that it is sentiment that drives prices.
The trouble with results announcements is that, unless you have inside knowledge, they are not predictable. A second compounding factor, is that it can also be difficult to predict how the market will react to a particular announcement. My recent error with ULVR was a classic example: I waited for the results, they seemed pretty poor to me (hence I shorted in the face of what I thought was a temporary rise), yet the market treated them positively! I don't think this was just me misinterpreting the results as there also seemed to be disagreement between commentators.
These factors mean that I don't see how charting techniques can work across announcements. Hence, I believe that trading across the announcement is more akin to gambling than professional trading. I do think, however, that with more experience and "City knowledge" than I have it may be possible to make money by predicting how the market will react to an announcement once it comes out. As I understand it, TheArb (who is a city insider) bases his trading strategy on this.
Enough of the theory! Short BOOT @ 595.5 this morning.
Current position: long TATE, short FP, SPW and BOOT.
Good trading,
Mark
Hi Jon,barjon said:
Well despite losing out, you did the right thing, in my view. The price has jumped because they issued better than expected results. No-one except an insider could have known that this was going to happen. The results could equally have been worse than expected and the price could have dropped.
Better to make profits slowly & steadily IMHO.
BTW thx for the tip on HSBA. With my strategy I'm looking at a possible short on it (weekly MACD heading down). Our usual opposing positions!
I think I'd taken it off my watchlist whilst results were due & then forgot to put it back on. Good trading,
Mark
Hi Fluke,Fluke said:
Have you read his "Trading for a Living"? Got a lot of my basic understanding of trading & TA from that. My tactics are based on his "triple screen trading system". I'd be interested to know if you think "Come Into my trading Room " is worth reading as well.
Thanks,
Mark
barjon
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marben said:.............. Our usual opposing positions!
Mark
Mark
well it confuses the readers so we can't be accused of leading people up the garden path since we've got both routes covered. Be interesting to see if we both profit again, but somehow I think this one might be an either or. Fluke
Farley's Master Swing Trader is quite good as well but it's not light reading.
good trading
jon
Barjon.
I have a copy of Farley's Master Swing Trader and also think it's worth having,I have picked up a lot tips from it and think it's one of the best books on TA,even though it's a concentrated read.
The reason I have bought Wilders book,is because it's been recommended so many times on trade2 win threads inc our old pal bonsai.
I have read and tried so many different methods of trading,going round in circles and decided I must settle on the simplest method that suits my style of trading.I need to settle on a trading plan that's easy to use with Sharescope and Elder's methods look Ok to me.
I am aware that most "day traders" do not rate moving averages and indicators etc,but working with Sharescope EOD charts over a few years,I can see the working results of ma's etc.
Mark.
I have not read Elders "Trading For A Living"so cannot compare the two,however I would say "Come into My Trading Room"repeats a lot of the stuff in his first book.It sets out the method of Tripple Screen charting that I understand you use, together with envelopes etc.As I say I am about half way through it.
If you like I will discuss this further either by T2W PM of e mail if you want too.
I have ordered "Trading fo a Living" from my local library and hope to get it.
Regards Jon.
I have a copy of Farley's Master Swing Trader and also think it's worth having,I have picked up a lot tips from it and think it's one of the best books on TA,even though it's a concentrated read.
The reason I have bought Wilders book,is because it's been recommended so many times on trade2 win threads inc our old pal bonsai.
I have read and tried so many different methods of trading,going round in circles and decided I must settle on the simplest method that suits my style of trading.I need to settle on a trading plan that's easy to use with Sharescope and Elder's methods look Ok to me.
I am aware that most "day traders" do not rate moving averages and indicators etc,but working with Sharescope EOD charts over a few years,I can see the working results of ma's etc.
Mark.
I have not read Elders "Trading For A Living"so cannot compare the two,however I would say "Come into My Trading Room"repeats a lot of the stuff in his first book.It sets out the method of Tripple Screen charting that I understand you use, together with envelopes etc.As I say I am about half way through it.
If you like I will discuss this further either by T2W PM of e mail if you want too.
I have ordered "Trading fo a Living" from my local library and hope to get it.
Regards Jon.
barjon
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Fluke said:
Fluke
I think you're spot on there. I'd say that finding a method that you're comfortable with - in terms of style, timescale, temperament, attitude to risk and in respect of the data package and trading platform you use - is at the top of the tree.
btw I wonder what happened to dear old bonsai - always so helpful and you could count the number of wrong calls he made on the fingers of one foot.
good trading
jon
'morning Jon et al,
Shame I closed that HSBA short yesterday! After analysing last night's EOD chart, decided NOT to re-enter short today: price is around bottom of daily stochastic (Elder Force Index [FI]also negative) & risk of upward correction looks too high for my liking.
If this happens (and you're still long), maybe we WILL both profit after all . I will look for re-entry once stochastic is a bit higher and [FI] also turns positive.
Am looking at EMG for possible short today & SBRY for possible long.
Good trading!
Mark
Shame I closed that HSBA short yesterday! After analysing last night's EOD chart, decided NOT to re-enter short today: price is around bottom of daily stochastic (Elder Force Index [FI]also negative) & risk of upward correction looks too high for my liking.
If this happens (and you're still long), maybe we WILL both profit after all
. I will look for re-entry once stochastic is a bit higher and [FI] also turns positive.Am looking at EMG for possible short today & SBRY for possible long.
Good trading!
Mark
barjon
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mornin' mark
still long hsba but maybe not for much longer
emg has just appeared on my radar and I need another bit of down correction to below 1607 to provide a possible long set up. Maybe we should swap entry signals and use them for our respective exits :idea: :cheesy:
good trading
jon
still long hsba but maybe not for much longer
emg has just appeared on my radar and I need another bit of down correction to below 1607 to provide a possible long set up. Maybe we should swap entry signals and use them for our respective exits :idea: :cheesy:
good trading
jon
Nice ideabarjon said:
- but my price target for EMG is WAY below 1607 (though i don't use these targets to time entry or exit). I'm expecting it to take 3 weeks or so before EMG reaches the level I'm after (if it does). In the meantime it could well bounce up a bit.On weekly MACD, it's been in an uptrend since mid-May. This seems to be ending now (hopefully due for a significant correction), though. I'm selling on what seems to be a "hiccough" up yesterday in the overall correction.
I suspect that this new downtrend won't be very sustained, though, unless the market as a whole takes a tumble. I'm hoping that there'll be enough in the correction for me to make a decent profit. I may also catch the cyclical uptrend and re-enter from the long side once the correction is over.
Time will tell....
Mark
morning all, been really busy with mining and oil stocks, got in cne yesterdays afternoon , and been in and out of blt and xta like they are the only stocks in ftse100.
jon i am out of my hbos and stan long last week, and the whole sector is confusing to me. got out of rbs at 47 yesterday made some. but not its down again, looks like 1595 is the support but its seesm too risky to go long, i was looking to long lloy but its gone thru its support of 480 so its a no to me yet.
jon i am out of my hbos and stan long last week, and the whole sector is confusing to me. got out of rbs at 47 yesterday made some. but not its down again, looks like 1595 is the support but its seesm too risky to go long, i was looking to long lloy but its gone thru its support of 480 so its a no to me yet.
Windowsill
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No more negative talk re long HSBC pls!.... Burren continues to amaze & i've shortened my trailing stop to 10pts & i've been stopped out of pru! Thats probably it for today.
