Active day and swing traders

[Euro_d]

Hi techst et al,
interesting points you raise, seems we are formed of similar moulds.

I use a 3% risk on any opening and move SL to open ASAP maintaining the 3%. I then use a combination of 3%, and rule of eights and previous days low to exit. Been successful the last 2 months after a bad late spring / summer.
I try and limit total risk to around 10% of capital. OK, I am not too strict on this and do not worry until I am up 15%, currently on 11.7%. Obviously, one can open more positions if current open positions are protected by stops in +ve territory.

I note that you are a fan of 123's as I am but I find it hard to spot them and know of no software strategy for any live data package that can spot them. How do you do it, by eye, like me?
I am thinking of writing a strategy to filter the first part of the formation so I can at least filter out "non starters", what do you think?

Regards to all,

Dave

 

[marben]

There's the 2% rule on individual positions that most folow. Then Elder recommends risking only 6% of capital at any one time. I find this too limiting when setups are plentiful, opportunities like the last steep pullback don't come around often and just limiting myself to 6% of my account doesn't allow me to strike when the irons hot. Whats your percentage?

Hi techst,

I stick to the 2% rule too but don't worry too much about number of positions I have open - at one point I had 12 open! At the moment, though, I'm down to just 0.5% because I've had to rethink my trading methods and am experimenting again. I'll step up first to 1% and then back to 2% once I'm satisfied that I'm making consistent profits.

You still in CBRY? - I'll bet it bounces now that I've been stopped out!

Regards,

MB

 

[techst]

Out of CBRY, Infact that's been my only loss in the last 10 trades. I'd like to hit a solid winning streak like that again, but I've gotta be careful now. I haven't changed my strategy for 3 years, I try not to be to rigid with rules on my trading. My moving averages point to an area where a setup is likely to happen, but i like to see the stock close above recent short term resistance when I'm looking to go long. Just breaking above local resistance isn't enough for me i like too see it still above that area at the close with volume above average. This stops me getting whipped out. I use the same style for closing losing trades. I'll wait for the close, I rarely trade before 3.30pm.

Spotting 1-2-3 just takes practice. I find it's best to use line charts for this, then you'll know when the stock has closed above resistance. And its easier to spot the highs and lows. 1-2-3 Reversals will sometimes only get to 1-2 and then the trend will begin it depends on the action of the market your following.

Here's a 1-2-3 from my files. On the long side from an old trade of mine. Above 815 on the chart signals point 3 of the reversal. But i have my own moving averages and i wanted to wait until 820 was broken. But you get the general idea. Note that the MACD is in a basing phase when a stock falls lower but MACDH starts moving sideways I would then be looking for the intermediate downmove to be slowing, I'd be watching this stock like hawk and ready for signs of strength returning and the continuation of the long-term bull trend. When the 1-2-3 is complete i enter. Or I'll enter the day before if the stock closes near the high of the day with strong volume. Hope this helps

 

[marben]

.... My moving averages point to an area where a setup is likely to happen, but i like to see the stock close above recent short term resistance when I'm looking to go long. Just breaking above local resistance isn't enough for me i like too see it still above that area at the close with volume above average. This stops me getting whipped out. I use the same style for closing losing trades. I'll wait for the close, I rarely trade before 3.30pm....

Hi techst,

Thanks for that. Most interesting. I can see that the "reversal" method would work well in the type of market we've had over the last couple of months. My "style" is somewhat different (I prefer clearer "rules") - everyone has to find their own way.

So far, I've gerenally stuck to the Elder/Rivalland "3rd screen", of waiting for a further breakout on the day AFTER a stock breaks out of it's range. I've also been experimenting with using VWAP slope throughout the day to detect true intraday price trend (and any reversals theirin). Try to avoid trading against the slope of intraday VWAP. The VWAP eliminates the effect of low-volume intrday spikes.

Regards,

Mark

 

[marben]

Hi all,

Well, things are looking up! I was somewhat concerned that my AZN long might break down through the range it's been in for the last few days and was preparing to close the trade if it did. Pleased to seee that it looks like it's breaking out on the upside. I'm still wary though, as this could be a false breakout.

Long BA. @ 347 price solidly above yesterday's high (I've set an ultratight intraday stop in case it drops back). Will set a normal stop tomorrow, if price holds today. Being careful here because volume has been very light so far today - but that could mean a rapid move either way. Apart from the intraday aspect, BA. has been trending up over the whole of this year & recent dip looks like a positional buying opportunity to me.

So, I'm now long AZN, BA., HG., SAB & SDR

Good trading all,

Mark

 

[barjon]

afternoon

closed ici - now long rio, hsba, bg and glh (today).

beginning to like the look of blnd where the retracement stopped pretty much on fib50%

good trading

jon

 

[barjon]

closed rio

 

[techst]

You should transfered that position to my account i would have taken it. lol. Depending on what price you got in.

 

[Fluke]

closed rio

barjon.
Me too, went into Rio on Tuesday got pig sick when it fell like a lead balloon and now to day could not believe my luck so came out like you with some profit

 

[barjon]

tech - you're probably right but you don't get many daily ton-ups so i'll leave the rest to you (in at 391)

good trading

jon

 

[techst]

ton-ups? please explain

 

[barjon]

ton=100

 

[techst]

Looks like ulvr is finally coming good, been stalking this one some time now. Gotta wait til the close, but there has been an improvement in volume midday. Position entry possible.

Ton-ups, yeah i see a 4% rise would be very tempting for a day's work. Sometimes it can be quite tough clicking those mouse buttons.

 

[Fluke]

Looks like ulvr is finally coming good, been stalking this one some time now. Gotta wait til the close, but there has been an improvement in volume midday. Position entry possible.

Ton-ups, yeah i see a 4% rise would be very tempting for a day's work. Sometimes it can be quite tough clicking those mouse buttons.

techst.

I have had ulvr on my 'A' list for about two weeks now,will have another look at this one, thanks.

 

[evostik]

Good morning,

As a newbie to the shorter term form of trading, I switched from paper trading to 'real' trading just last week. I was aware that the psychology was going to be somewhat different and it ceratinly was! I found that selecting 'stocks to watch' was OK, deciding in advance on the entry criteria was OK and even placing the trade when the triggers hit was OK. Its from here on I found the massive difference. I found myself fixed to the screen watching every tick and, I know it sounds silly, but getting quite emotional with every move up or down. Here are the trades I executed:

BT. short at 214.75 - running
WMH short at 515 - running
BAB long at 216 - running
TATE long at 255 - closed for +15 points
OML long at 156 - running

I think that knowing when to close a trade is turning out to be harder than I thought. When its a paper trade its easy because you just let in run and decide afterwards when you 'would have' exited. It would be great to hear other peoples views about this element of trading. Also. I am not proud so any comments about the positions I have taken would also be welcome (I think!).

Happy trading,

Evo

 

[marben]

I think that knowing when to close a trade is turning out to be harder than I thought. When its a paper trade its easy because you just let in run and decide afterwards when you 'would have' exited. It would be great to hear other peoples views about this element of trading. Also. I am not proud so any comments about the positions I have taken would also be welcome (I think!).

Hi Evo,

Yup, it's tricky :cheesy: . This needs to be part of your trading plan. In other words, BEFORE you enter a trade you also need to consider the circumstances under which you will exit it. This means a) setting a stop loss at a point that you do not expect the stock to hit as part of normal trading, i.e. the stop should be at a point where you are satisfied that you "got the trade wrong" if that point is hit. b) you also need to decide on your criteria for exiting the trade if it goes well. There are lots of different ways of doing this. For example, you might decide to exit a long if it reaches a resistance level and fails to break through it. Resetting your stop to a higher level, so that the trade is closed automatically if the price falls back, is one way of achieving this.

Good trading,

Mark

 

[barjon]

morning all

yes, I always think that exits are more difficult than entries - there's not a lot worse than watching a healthy profit fall back into loss

Stop loss is relatively straightforward - as long as discipline is maintained. Taking profit gives me the problem. Bit like Euro I was unhappy last year that I was leaving too much on the table so I experimented a bit this year. I doubt it's mathamatically sound but where I've got to suits me emotionally - I close half when 1:1 is reached and move stop to breakeven on the remainder - thus locking in "first target" profit. I then trail the stop incrementally and tighten it if any of my favoured candles appear - a shooting star for example.

I don't suggest this is the "right" way - it's just what I do.

good trading

jon

 

[marben]

Long GSK @ 1477 - positional trade but with tight intraday stop today, in case of rapid fall-back on US opening. Will stay in trade as long as it clloses above Friday's close.

 

[marben]

Opened another long positonal trade: BOC @ 1145.

Now long AZN, BA., BOC, GSK, HG., SAB, SDR. No shorts, so I guess the market is about to tank :cheesy:

Good trading!

Mark

 

[marben]

Stopped out of GSK long @ 1468. May re-enter later....