Evening trading US shares

[tafita]

A fairly undisciplined day of trading for me today. The first trade on EBAY was pure speculation and based entirely on momentum as can be seen from the attached 1 min chart. As it was a speculative, I was keen to get the stop to at least break even ASAP and anything more than this was a bonus. Stop too tight again . ATR at the time on the 1 minute chart was 12 cents= s/l at 35.68 from an entry price of 35.80. A sensible place to put the stop in any event would have been a few ticks below the candle I entered on. WCS. (woulda/coulda/shoulda). The set up on the chart speaks for itself. The second trade was on a stock I've been warned about, AAPL. The attachment should shows a horizontal line where the lower VWAP was situated at the time. The DOW was in no man's land i.e. only OS in 3 min chart. Also, AAPL had been weak since the open. However, the main reason why the trade failed was that I took the trade BEFORE AAPL became OS in the 1 minute chart in my opinion. The first of two trades on AMGN was speculative based on it's strength and chart pattern. The only error was not exiting into the furious buying past 52.70 since the price had extended itself away from the 10 EMA . The last trade was a VWAP signal I misinterpreted. Although the price had reached the lower VWAP line as seen, I did not wait for confirmation from MACCI and entered as indicated by the blue arrows. 10 minutes later the signal was much stronger.

Apologies for the lengthly post, will try to keep them shorter. I may take tomorrow off to re-evaluate stop losses/entry and exit confirmations since these are the main issues I am having. -$12.00

Happy trading

Tafita

 

[Grey1]

A fairly undisciplined day of trading for me today. The first trade on EBAY was pure speculation and based entirely on momentum as can be seen from the attached 1 min chart. As it was a speculative, I was keen to get the stop to at least break even ASAP and anything more than this was a bonus. Stop too tight again . ATR at the time on the 1 minute chart was 12 cents= s/l at 35.68 from an entry price of 35.80. A sensible place to put the stop in any event would have been a few ticks below the candle I entered on. WCS. (woulda/coulda/shoulda). The set up on the chart speaks for itself. The second trade was on a stock I've been warned about, AAPL. The attachment should shows a horizontal line where the lower VWAP was situated at the time. The DOW was in no man's land i.e. only OS in 3 min chart. Also, AAPL had been weak since the open. However, the main reason why the trade failed was that I took the trade BEFORE AAPL became OS in the 1 minute chart in my opinion. The first of two trades on AMGN was speculative based on it's strength and chart pattern. The only error was not exiting into the furious buying past 52.70 since the price had extended itself away from the 20 EMA . The last trade was a VWAP signal I misinterpreted. Although the price had reached the lower VWAP line as seen, I did not wait for confirmation from MACCI and entered as indicated by the blue arrows. 10 minutes later the signal was much stronger.

Apologies for the lengthly post, will try to keep them shorter. I may take tomorrow off to re-evaluate stop losses/entry and exit confirmations since these are the main issues I am having. -$12.00

Happy trading

Tafita

Tafita,
your pos size is not correct buddy . ALso when you are MPD trading it does not matter where DOW IS so long as you are hedged.

Grey1

 

[tafita]

Am I correct in assuming that position sizing is calculated from the ATR in different timeframes using the 1% rule? i.e. 1% of cash balance divided by the ATR of the 1, 3 and 5 minute timeframes = position size? Based on $100,000 cash balance and ATR's of 1, 3 and 5 min timeframes of 15c, 25c and 70c would be:

$6666 (1 min) $4000 (3 min) and $1428. Total position size being $12,094 worth of stock?

 

[TheBramble]

ATR of timeframe being traded.

 

[tafita]

Ah yes, easy when you know how. Thanks Bramble.. Having looked at yesterday's trades in more detail, it seems as if stop losses should be calculated on the ATR. That is, if the ATR is 30c then so should the stop loss together with a few extra ticks for safety. This of course is assuming I am taking the trade based on one timeframe. The scaling in/out issue to me at least seems straightforward: scale in and out based on ATR in different time frames i.e. when 1 minute chart becomes OS if long, scale out relative to the ATR of 1 minute time frame. I think I also need to pick carefully the set ups and wait for stronger confirmation on VWAP trades.

Tafita

 

[leovirgo]

Tafita,
your pos size is not correct buddy . ALso when you are MPD trading it does not matter where DOW IS so long as you are hedged.

Grey1

Hi Grey1

It's very nice to see you back. Hope to learn a few more tricks..

regards,..

 

[moreagr]

Hi Grey1

It's very nice to see you back. Hope to learn a few more tricks..

regards,..

here also good to see you back my friend!!

 

[Grey1]

here also good to see you back my friend!!

thx buddy .. I am back to trading from yesterday and be around to help out as much as i can .. up to day around $1300 ish ,,,,

grey1

 

[wallstreet111]

thx buddy .. I am back to trading from yesterday and be around to help out as much as i can .. up to day around $1300 ish ,,,,

grey1

great thread this - like your technique grey1.
i trade uk stocks in a vaguely similar manner - when index is overbought, look to short statiscally weak component stocks & vice versa when oversold. use intraday TA for entry & close when the move is spent.
position sizing/risk management imperative.
will post some entries/exits if anyone interested in uk stuff...

 

[timsk]

will post some entries/exits if anyone interested in uk stuff...

Hi wallstreet111,
With a name like yours you wanna trade U.S. stocks that's what you wanna do!
Posting your trades is a great idea, may I suggest doing so on a thread in the U.K. forum:
http://www.trade2win.com/boards/forumdisplay.php?f=56
There will be much more interest there.
Tim.

 

[Grey1]

wall street

if I was you I would trade US stocks as TA work far better on them than UK ,,, This is due to volatility you have on most US stocks..

it is easy to find out what stocks TA best works on ,... Use a simple Ob OS indicator such as Stochastic or CCI .. does the price move when your indicator moves ,, if not then move to another stock ,,, simple...

Once you moved into US stocks then you have to choose the correct ones which suits your expertise .
There are two type of US stocks ,,

Those that program traders Love such as AAPL ,GOOG, RIMM,AMZN, ERTS, YHOO, CELG ,,,,,, and those that program traders prefer not to get involved with ,, LOW volume, very LOW short term ATR stocks.

The first type are often very difficult to trade because of the huge edge program traders have over human in terms of a) execution 2 ) discipline
The second type are easier but you need to wait longer for their move.. I recommend you first try the second type before becoming proficient in the latter


grey1

 

[options]

Welcome back Grey1.

Hope you had a nice relaxing break from the markets.

 

[rajibde]

Hi Grey1- Welcome Back-
Some time back you had mentioned that before the market starts, you identify a few long and a few short stocks (I think you'd mentioned 3 of each type for the day)from your stock screener- please can you throw some more light on this selection process (are they based on just high premarket volume/price movements?) ?

Thanks

Raj

 

[Grey1]

Hi Grey1- Welcome Back-
Some time back you had mentioned that before the market starts, you identify a few long and a few short stocks (I think you'd mentioned 3 of each type for the day)from your stock screener- please can you throw some more light on this selection process (are they based on just high premarket volume/price movements?) ?

Thanks

Raj

This is the strategy for stock selection

Short stocks that are OB and closed near of the day a day before ( in this case Friday ).. Example NVDA for Monday

Entry :-- short only when INDU MACCI 10 min is OB .SO if market is OB then short NVDA,

Exit :-- sell all when INDU 10 min gets OS

Risk managment :--

stop loss if MACCI 10 min heading up
No adding to position
No reduction in position size


I also choose stocks based on their Fundamental merits for 2 , 3 days,, ALL entry and exit are technical ,,, direction based on fundamentals,,,,, Monday I am looking in shorting RECN and LOW

Grey1

 

[rajibde]

This is the strategy for stock selection

Short stocks that are OB and closed near of the day a day before ( in this case Friday ).. Example NVDA for Monday

Entry :-- short only when INDU MACCI 10 min is OB .SO if market is OB then short NVDA,

Exit :-- sell all when INDU 10 min gets OS

Risk managment :--

stop loss if MACCI 10 min heading up
No adding to position
No reduction in position size


I also choose stocks based on their Fundamental merits for 2 , 3 days,, ALL entry and exit are technical ,,, direction based on fundamentals,,,,, Monday I am looking in shorting RECN and LOW

Grey1

Hi Iraj-Thank you very much for the descriptive replies. Do you narrow down your focus on the number of stocks on the trading day before the market opens based on pre market activities?

Cheers!

Raj

 

[Trader333]

Short stocks that are OB and closed near of the day a day before

Iraj,

Did you mean "high of the day" ?


Paul

 

[Grey1]

Iraj,

Did you mean "high of the day" ?


Paul

I do applogise for the error,, Not high of the day but LOW of the day ,

IN another word when MACCI is OB on FRIDAY and the stocks closes NEAR LOW OF THE DAY on the same day then you short the stock NEXT DAY ,, you donot want to short the stocks that close near HIGH of the day ..

YOU NEED TO SEE THE EVIDENCE OF SELLER'S DOMINATION

Grey1

 

[Grey1]

Hi Iraj-Thank you very much for the descriptive replies. Do you narrow down your focus on the number of stocks on the trading day before the market opens based on pre market activities?

Cheers!

Raj

Absolutely not.. Pre market activity often does not mean much for individual stocks,, Pre market activity on sector is different though ,,,

Why narrow down ? if you end up with 5 stocks then trade them all with much lesser POS size and let them run longer,, This way you have distributed the risk over a range ,,, I myself trade both styles,, fast scalping and Longer runs,,, I scalp fast because of my tools which helps me out a lot and my experience,,,

This pic shown is the example of basket trades on Friday as i explained above,, ( sorry about posting Trades again as I am told it serves no purpose hence no more P/l


Grey1

 

[rajibde]

Absolutely not.. Pre market activity often does not mean much for individual stocks,, Pre market activity on sector is different though ,,,

Why narrow down ? if you end up with 5 stocks then trade them all with much lesser POS size and let them run longer,, This way you have distributed the risk over a range ,,, I myself trade both styles,, fast scalping and Longer runs,,, I scalp fast because of my tools which helps me out a lot and my experience,,,

This pic shown is the example of basket trades on Friday as i explained above,, ( sorry about posting Trades again as I am told it serves no purpose hence no more P/l


Grey1

Thanks Iraj for the reply.

On the other note-Not sure about others, but Iraj, your p/l attachment quite often serves as a very strong motivation for me during my low times to learn more and carry on....

Raj

 

[Trader333]

Not high of the day but LOW of the day

Yes, in fact I have previously already known this as you posted it once before, I am not really with it at the moment


Paul