Stop has to be dynamic and relevant to the market .. Stop should shrink or widen depending what phase of the cycle market is going throughyacarob1 said:I sometimes wonder whether I should quit using stops altogether and just let my exiting method run its course and do the work.
Maybe it's ok as a defensive back-stop to have it there just in case I lose my internet connection or whatever.
Mr. Charts said:One of the many ways I find stocks setting up for nice moves is to look at what I call hot stocks - ones which are likely to attract a lot of buying/selling on the day.
One of today's was ESCL which I chose pre-market.
If one of these sets up one of my patterns, and it's feasible to trade it with a tight stop of a max of 10-15c, then fine. Otherwise I don't trade it.
This type of hot stock usually moves quite differently to its normal behaviour.
Here is my first trade today.
There are usually opportunities like this most days so a professional trader can often get off to a nice profitable start in the first half hour of trading.
This one produced a profit of $850.
There are many ways to trade, but I prefer directional moves and they are, imho, not difficult to find almost every day, even when the market is flat.
I am currently enjoying another bite of the cherry with ESCL, being long again from 7.24 with a trailing stop at 7.48. If it goes up further I will raise the stop as it moves up.
I have erased some of the details of the annotations to stay within t2w guidelines.
I hope someone finds this type of pattern useful or interesting.
Richard
Thanks for some very illustrative examples.Mr. Charts said:Here is an interesting situation with ADBE this afternoon.
I hope some people find my comments helpful/interesting/thought provoking.
I have erased some of the details of the annotations to stay within t2w guidelines.
Some would call it a false breakout - it was, but the clues were there in advance.
Richard
PitBull said:Hi Sean
Some stocks I have on my watchlist for potential swing plays and also ones that have been trending nicely of a late,
Casino stocks such as WYNN, LVS
Airline stocks CAL, UAUA
CSCO on a nice trend
SEPR consolidating at 52 week highs
NKTR, made bounce off support yesterday and a key reversal for quick short swing play
AEOS breaking out to new 52 week highs
Watch BBBY for a breakdown from resistance
CMCSA broke out of 52 week highs yesterday, watch for pullback for entry
I find the best opportunities for evening moves are the hottest stocks of the day, I don't concentrate on one stock only but I have many favourites, some outlined above.
Hope this helps
Best regards
Pitbull
http://www.trade2win.com/knowledge/articles/general_articles/an-example-of-tape-reading/Mr. Charts said:superfly,
You ask, "Do you enter with market orders or stop market orders and in this particular trade, where did you place your initial stop?"
Personally I use market orders in this situation and my stop depends on level 2 buy/sell pressures. MM and other participant behaviour, momentum, T&S. Have a look at http://www.trade2win.com/knowledge/articles/general_articles/an-example-of-tape-reading/
for an example. There are three examples of mine on Google video you can find.
Hello Sean,
Some of my favourite core trading stocks are AAPL, SNDK, AMGN, ERTS, VLO.
Richard