Stop Loss

[Naz]

Helen.In my heart i'm an out and out Nasdaq level 2 scalper.Where we just use our level 2 screens.

Of course being a trader i know my t/a as well.
I have always believed that there was a place for t/a to work side by side with level 2.

Level 2 got me out the very bottom on the chart (look at the chart time and check the time of my post)and in a minute i think t/a and my auto stop will get me out on the remaining half.

Now stopped out.

 

[Naz]

Reward to risk was 3.857/1 on the whole trade which is acceptable.

There is nothing like a real example and i hope it might have helped Benji and Zero cool.

(Of course i was doing everything rather quickly and because i was short i actualy bought the stock to close out not sold it as i said in the posts.)

 

[mmillar]

Hi Naz,

So how did you get such an accurate (3 decimal places) Reward/Risk ratio? Or is this something you calculate after your trade is closed?

I try to calculate a Reward/Risk ratio before I trade (to make sure it is a reasonable risk) but it is just an educated guess based on experience and the charts.

Cheers

Martin

 

[Naz]

Yes i just calculated it after the trade was closed.I try to make every trade 1/3 risk reward.

Just to show you nothing goes always to plan the short that i'd been stalking.ie done my homework and was wtaching very closely was QCOM.

I enclose the chart for people to view.A nice island reversal on 2/12.A pulback to a fib level at about $40.2.Today i was hoping to get short at a fib pullback area using the level 2 by the red arrow.

It was this stock that i realy wanted to get short in, run the first half,take a profit and run with the second part.

 

[Naz]

Here is the follow up to QCOM.I stalked it last night and because it pulled back just right.(check the chart) i took an overnight short position of half my normal size.Just because you miss one entry dosnt mean you have to pass it by.Just watch it like a big cat, stalk it until you get that great entry.If its overnight i tend to only hold half my normal size.

 

[Naz]

QCOM is in a down trend.If it runs down all morning as it did and i've only got half my size i like to bank profits before any bounce.So the chart below shows where i closed out.I used a trailing stop all the way down to make sure i didnt give back to much.I just managed the position with the sole view of banking profits.Total run was $1.08.

 

[Zero Cool]

Hey Naz and peeps, Wow - i mean woah! I'm going to have to do alot more reading up on some of the elements you discussed there throughtout your recent trading i.e. fib grids, etc, but thanks for the info - keep up the good work!

Helen -- thanks for the info on S/R lvls, will try see them on the charts.

Just curious but did anyone go short on the FTSE100 today? If so what method of trading did you use?

Cheers people, keep it going

 

[Black Swan]

bump, old thread, interesting simple technique very well explained.