Active day and swing traders

[2 blankets]

'Fraid so 🙁 - at least the wather wasn't too tempting. I believe in Arnold Palmer's maxim: "It's funny how the more I practice, the luckier I get" 😉 . No-one should think that trading is an easy way to make a fast buck!




Yeah, that's how I'm playing it. As I said I'm only trading at 1/4 scale until I'm satisfied with my new method. My stop will be just below the recent low following the pop.

Thanks Dave,

Mark

I believe in Arnold Palmer's maxim: "It's funny how the more I practice, the luckier I get" 😉 i might be wrong but wasnt that gary player who was famous fore that? anyway like like my golf yesterday sly went belly up praise the the lord for G/SL,never mind live to fight another trdae

 

[marben]

I believe in Arnold Palmer's maxim: "It's funny how the more I practice, the luckier I get" 😉 i might be wrong but wasnt that gary player who was famous fore that? anyway like like my golf yesterday sly went belly up praise the the lord for G/SL,never mind live to fight another trdae

Nope, you're quite right 2 Blankets! I was a bit lazy in remembering/looking up that quote: it was Gary Player.

Good trading,

Mark

 

[Euro_d]

Morning all,
bit of a sell off today, got in short UKX @ 5360 and am still in. Will be carefully watching MACD, resistance @ 44 and other inds. if 5344 is broken to the upside I will close. That more than compensates for PAG which closed on stop flat.
Still in SIG flat
SPT slight neg
AGS slight pos

Good trading (and golf) to all

Dave

 

[PitBull]

Afternoon all

First post on this thread. Long on Carnival, looks like the intermediate down trend has been broken, long bullish candle yesterday, MACD rising from below signal line and selling losing momentum, RSI broke resistance at 50, Money flow also rising above 50. Good volume yesterday based on bullish statement from Barrons yesterday about cruise sector looks undervalued. Long term trend up on weekly and target is the double top at approx 3200.

Any thoughts?

 

[marben]

Afternoon all

First post on this thread. Long on Carnival, looks like the intermediate down trend has been broken, long bullish candle yesterday, MACD rising from below signal line and selling losing momentum, RSI broke resistance at 50, Money flow also rising above 50. Good volume yesterday based on bullish statement from Barrons yesterday about cruise sector looks undervalued. Long term trend up on weekly and target is the double top at approx 3200.

Any thoughts?

Hi Pitbull & welcome,

With my old methods it lloks like a good buy, from weekly MACD upturn. Evidence of uptrend not strong enough for me to buy with new methods yet.

One caveat though: daily stochastic is showing "overbought". Elder Force index is also peaking, so personally I'd be inclined to wait for a pullback before entering this trade. Depends on your intended trading timescale, though.

Good trading,

Mark

 

[PitBull]

Hi Mark

Thanks for the quick response. I intend to position trade this over the next week or 2 weeks, as long as the new uptrend is in force. Take your point that it is a risky trade as strong uptrend not in force, but Im trying to catch the swing from a swing low. A bit confused about your stoc being overbought as mine is oversold and force index is above zero line and rising.

Please see attached chart.

 

[bracke]

Swingers, Positionists & Day Traders

A few questions if I may

1 What risk/reward ratio do you operate to? ie if your target is a gain of 10 points how many stoploss points do you set.

2 Do you vary it, if so, why?

3 Do you operate one r/r for day trading and another for position trading?

Honest answers only, barjon is watching!

Regards

bracke

 

[PitBull]

Bracke

I operate a minimum of 2:1 Reward Risk ratio whatever type of trading Im doing and I do not vary it.

Hope this helps

 

[bracke]

Bracke

I operate a minimum of 2:1 Reward Risk ratio whatever type of trading Im doing and I do not vary it.

Hope this helps

PitBull

Thank you for your reply.

I aim to operate the same 2:1 ratio which I do on longer position trades ( and therefore higher targets) but find it difficult to do so on day or short term trades. On short term trades I find that the target is such that the stoploss is too close, resulting in me pushing out the stoploss and accepting a lower r/r ratio. How do you avoid this situation?

Regards

bracke

 

[2 blankets]

afternoon all got stopped out on rio this morning @2000.5 with fins and then it came right of well gutted,still long prty looking at this min to go long on the dow d/cash 50p a pt

 

[marben]

Hi Mark

Thanks for the quick response. I intend to position trade this over the next week or 2 weeks, as long as the new uptrend is in force. Take your point that it is a risky trade as strong uptrend not in force, but Im trying to catch the swing from a swing low. A bit confused about your stoc being overbought as mine is oversold and force index is above zero line and rising.

Please see attached chart.

Hi PitBull,

Very Interesting. I'll take the stochastic first. See the attchment for my version. The reason for the difference is that you've used the default of 14 periods of smoothing, whereas I use 5 periods, which is closer to what Elder suggests (and is consistent with MetaStock's defaults). He suggests 3 days of smoothing for short-term analysis (i.e. finding the best entry point) or 14-21 days for "significant market turns".

Concerning the Force Index, I use Elder's triple screen & he says "the 2-day EMA of Force Index gives buy signals when it falls below its centreline as long as it does not does not fall below to a new multiweek low". The idea is that you are "buying on the dips".

HTH,

Mark

 

[marben]

Swingers, Positionists & Day Traders

A few questions if I may

1 What risk/reward ratio do you operate to? ie if your target is a gain of 10 points how many stoploss points do you set.

2 Do you vary it, if so, why?

3 Do you operate one r/r for day trading and another for position trading?

Honest answers only, barjon is watching!

Regards

bracke

Hi Bracke,

Another interesting question! Funnily enough I don't have a target price at all at the moment!

Occasionally, I've used targets before and aimed for a 2:1 ratio between target distance vs S/L distance.

My methods don't tell me how far an instrument is likely to move, just the direction. My exit is more time-based than target based. I try to time my exit to be at the peak (long) or trough (short) of 2 stochastic cycles after I've entered. To reduce risk I'm taking 50% profits after the 1st cycle. When an instrument is peaking in my favour, I use a trailing stop-loss to exit the trade.

A new feature in my revised method is to use parabolic SAR to exit if an instrument starts trending very heavily in my favour.

Cheers,

Mark

 

[bracke]

Hi Bracke,

Another interesting question! Funnily enough I don't have a target price at all at the moment!

Occasionally, I've used targets before and aimed for a 2:1 ratio between target distance vs S/L distance.

My methods don't tell me how far an instrument is likely to move, just the direction. My exit is more time-based than target based. I try to time my exit to be at the peak (long) or trough (short) of 2 stochastic cycles after I've entered. To reduce risk I'm taking 50% profits after the 1st cycle. When an instrument is peaking in my favour, I use a trailing stop-loss to exit the trade.

A new feature in my revised method is to use parabolic SAR to exit if an instrument starts trending very heavily in my favour.

Cheers,

Mark

Marben

Thank you for your reply

Further questions!

1 Assuming you use a stoploss, what is your average r/r return?

2 What method do you use to determine stoploss?

Regards

bracke

 

[marben]

Marben

Thank you for your reply

Further questions!

1 Assuming you use a stoploss, what is your average r/r return?

2 What method do you use to determine stoploss?

Regards

bracke

Not surewhat you mean by r/r retun but over my first year of full-time trading I've made a return of about 6% of my trading capital. Hopefully I'll make fewer mistakes in the 2nd year and do somewhat better.

I place stoplosses just below/above the most recent low/high or just outside the current Bollinger Band (so I get stopped out when a breakout occurs against me). This is a matter of fine judgement. I generally prefer to have a slightly looser stop and smaller trade than the converse. One golden rule I've always applied: NEVER MOVE STOP LOSSES TO INCREASE YOUR RISK.

Regards,

Mark

 

[Euro_d]

Welcome Bracke to our little group.
Mark, I like your idea of stops and am actually looking at implementing something similar as my fixed SL based on value is not always too successful.

Bracke, you will see that I have posted my current idea of stops a couple of days ago.

Take note of Mark, never move stops to increase risk, it is suicide!

 

[bracke]

Not surewhat you mean by r/r retun but over my first year of full-time trading I've made a return of about 6% of my trading capital. Hopefully I'll make fewer mistakes in the 2nd year and do somewhat better.

I place stoplosses just below/above the most recent low/high or just outside the current Bollinger Band (so I get stopped out when a breakout occurs against me). This is a matter of fine judgement. I generally prefer to have a slightly looser stop and smaller trade than the converse. One golden rule I've always applied: NEVER MOVE STOP LOSSES TO INCREASE YOUR RISK.

Regards,

Mark

I probably did not express myself very well withe first question. Perhaps I can do better with this re-phrasing. After you have closed a winning trade what on average is the r/r ratio eg trade taken at 100 s/loss 90 closed at 120. Therefore risk = 10 reward = 20 therefore risk/reward = 1:2 or if you prefer reward/risk = 2:1.

I totally agree with non-movement of stoploss, once you start to move it when do you stop!

Regards

bracke

 

[Euro_d]

I probably did not express myself very well withe first question. Perhaps I can do better with this re-phrasing. After you have closed a winning trade what on average is the r/r ratio eg trade taken at 100 s/loss 90 closed at 120. Therefore risk = 10 reward = 20 therefore risk/reward = 1:2 or if you prefer reward/risk = 2:1.

I totally agree with non-movement of stoploss, once you start to move it when do you stop!

Regards

bracke

I personally do not keep such records nor do I set targets. I move the SL to break even as rapidly as reasonably possible then slacken the stops to let the trade run. My initial SL is currently (but see my previous post) 3% of the share price. Then I use rule of eights stops, but am looking at changing.

 

[bracke]

Welcome Bracke to our little group.
Mark, I like your idea of stops and am actually looking at implementing something similar as my fixed SL based on value is not always too successful.

Bracke, you will see that I have posted my current idea of stops a couple of days ago.

Take note of Mark, never move stops to increase risk, it is suicide!

Euro_d

Thank you for your welcome.

I read your current idea of stops. My own is based on support /resistance and trading ranges.

Regards

bracke

 

[bracke]

I personally do not keep such records nor do I set targets. I move the SL to break even as rapidly as reasonably possible then slacken the stops to let the trade run. My initial SL is currently (but see my previous post) 3% of the share price. Then I use rule of eights stops, but am looking at changing.

If no target when do you close the trade?

If no r/r ratio calculation how do you decide if the trade is worth taking?

If stoploss moved up rapidly do you not find that you are regularly stopped out as the price ranges?

Regards

bracke

 

[marben]

If no target when do you close the trade?

If no r/r ratio calculation how do you decide if the trade is worth taking?

If stoploss moved up rapidly do you not find that you are regularly stopped out as the price ranges?

Regards

bracke

Hi Bracke,

My new method uses a very tight filter to find strongly trending stocks. it only selects a small number of possible trades with highest probability of showing gains. the number of possible trades it throws up is small enough that I believe I can take them all, for now.

Getting the exit strategy right is another important part of trading: obviously you want to maximise your profit but get out before losing it. For me, the best way is to look for market signals to exit, rather than setting a specific target, which may or may not be reached.

Everyone must find their own way of trading 🙂 . What works for one person may not for another..

Good trading!

Mark