Diary of a swing spread better

[hungvir]

Dow ended down

This is how the story ends. The DOW re-entered the channel and closed down 65 points on the day.

 

[Lightning McQueen]

well done hung enjoyed your success today

 

[hungvir]

well done hung enjoyed your success today

Thanks, Don.

I could not resist the trade Just trying to touch and feel the market at the moment. Also, with smaller stakes I can keep my cool better.

 

[Splitlink]

This is how the story ends. The DOW re-entered the channel and closed down 65 points on the day.

I'm very happy for you with that one, Hung.

That stop and manual entry, making a reverse open position was bad luck. Never mind, the whole trade was well planned and a lesson for impulse traders to learn.

Split

 

[hungvir]

I'm very happy for you with that one, Hung.

That stop and manual entry, making a reverse open position was bad luck. Never mind, the whole trade was well planned and a lesson for impulse traders to learn.

Split

Hi Split,

Thank you!

Hope you're having a good day there. Spring is here in London at last and Easter holiday is just hours away.

I am thinking of going long TPK but it was just downgraded from buy to hold by Citigroup. I am torn between technical and fundamental here.

If TPK can manage to close above 1676 today, I'll have a second look.

Cheers,

Hung

 

[hungvir]

A quick glance at money.cnn.com shows that it might be another down day for the DOW.

 

[pboi]

kinda got slack ith my figures and missed the down trend by one day, tried to enter late on all three markets got burned on the DAX..tho DOw is playing ball and heading down nicely. FTSE is not listening!

 

[hungvir]

Shorting the DOW

Went short the DOW at 11123, stop loss at 11127.

 

[hungvir]

I am out already. So quick. Minus 4 points. Will go long on a dip if the price broke the main resistance line.

 

[hungvir]

A clear change in trend is shown here. Will go long on a dip.

 

[hungvir]

Going long

Long the DOW, stop loss at 11119, risking 15 points. I felt like shorting it when RSI registered extreme reading. It indeed came down several bars.

 

[hungvir]

The optimum entry is where the blue circle is (when the price started to head up after a dip). I was too anxious to go long and bought at 6 points above that.

 

[hungvir]

The DOW actually broke out of a small triangle first and move up more than10 points before coming back to the red support line.

 

[hungvir]

Tempted to buy more but adding to a losing position is not good. It's still 6 points away from where the stop loss is.

 

[hungvir]

Stopped out of the trade. The market never came down to 11120 but unlike Fins, Worldspreads does not accept order based on market price. I went along with their quote, took into account the difference between their quote and the actual market price but still being stopped out. Will switch to Fins for this kind of tight stops.

And the silly thing is the market is going up. Big way.

I won't trade with anyone who don't accept market price. 'Our quote' is simply not good enough and can be manipulative.

 

[hungvir]

Placed a stop buy order with Fins. Buy when the DOW reaches 11132. Stop loss 11116. Reduced stake size to 50p.

 

[hungvir]

Canceled stop buy order. It looks like the DOW is forming a head and shoulder pattern but time is running out. There's always the day after tomorrow and Sunday.

 

[hungvir]

What I noticed today is whenever RSI registered extreme reading of around 90 (overbought), the DOW came down enough to make a profit for shorters.

 

[hungvir]

Canceled stop buy order. It looks like the DOW is forming a head and shoulder pattern but time is running out. There's always the day after tomorrow and Sunday.

More like head, shoulder, knees and toes :-0

 

[hungvir]

One more thing about Worldspreads is that it takes them about 10-15 minutes to fill a stop loss order once the set level is breached. By the time they took me out of the market today, the DOW was actually 10 point above the breached level. I could have closed the order myself and save 10 points. But until they accept order based on market price again (yes, they used to accept it), I'll think twice before placing a trade with them.