Trading NASDAQ stocks with Jerry Olson & Ian Hodgson

[LevII]

LevII,
Sorry to be pedantic, but your salutation ought to read Racer, old chapess. There are precious few women on these boards as it is and fewer still with Racer's knowledge and experience. Although I don't know her personally, I'll wager she'd also prefer less of the 'old'.

Tim.

Corrected

 

[Jerry Olson]

Ever trade like a dunce?

Well let me say i had just one of those days folks.

traded like i was a newbie and paid for it too. Ohh i'll survive i guess............

But i was leaning toward a rally today and lo and behold Mrs Market said "no way Jose"

I can say with all candor i do have off days and i do take hits once in awhile but it's all a part and parcel of being a pro trader.

Trust me folks i do have plently of scars all over my body for all the years trading for a living.

So what do all good traders do about days like this?

Have a few drinks, a nice dinner with the wife, (my new wife) and relax for a while before i go over these trades in my logs.

If you keep solid records of what you're doing intraday you can always kind of review them while checking the charts too.

Seeing ones mistakes always helps me be a better trader. You have to stop thinking and just react. If you snooze you lose!!!

have a nice drink on me all

rest up and let's fight another day.

 

[Grey1]

Hello guys , another day another $$$. I took a long Trade BRCM yesterday just before close based on a rare signal from daily VWAP engine . Daily signals are rare but that are very strong and very profitable . I be posting the p/L directly from IB screen after the market opens.

For those of you who are still thinking of sticking to your own indicators i would recommend to gauge the relative strength of stocks against the market strength and take a position accordingly. if market is weak but stock is strong and closes just above previous close then you might wish to consider to go long . Of course this is the elementary gap trading technique and you must adjust your position size not to hurt your capital. i cannot stress enough that trading is about risk analysis, if you don't do any kind of objective analysis you have little chance of long term survival. This I demonstrated in a meeting with my man IAN .

 

[ianh]

Hello guys , another day another $$$. I took a long Trade BRCM yesterday just before close based on a rare signal from daily VWAP engine . Daily signals are rare but that are very strong and very profitable . I be posting the p/L directly from IB screen after the market opens.

For those of you who are still thinking of sticking to your own indicators i would recommend to gauge the relative strength of stocks against the market strength and take a position accordingly. if market is weak but stock is strong and closes just above previous close then you might wish to consider to go long . Of course this is the elementary gap trading technique and you must adjust your position size not to hurt your capital. i cannot stress enough that trading is about risk analysis, if you don't do any kind of objective analysis you have little chance of long term survival. This I demonstrated in a meeting with my man IAN .

And demonstrated very well thank you my man! and something that i am implementing into my trading. Too many times we just trade the same number of shares without paying attention to the volatility of the individual stock. With certain stocks, we do it sub-consciously; I mean if you normally trade 1,000 shares in a stock like AAPL then you obviously wouldn't trade 1,000 shares in google, but google is a $370 stock so that seems perfectly logical, but the price of the stock does not determine its volatility, look at BIDU for example, a similar priced stock to AAPL, but too many shares in that could kill you! and your capital could take a serious hit.

 

[Grey1]

And demonstrated very well thank you my man! and something that i am implementing into my trading. Too many times we just trade the same number of shares without paying attention to the volatility of the individual stock. With certain stocks, we do it sub-consciously; I mean if you normally trade 1,000 shares in a stock like AAPL then you obviously wouldn't trade 1,000 shares in google, but google is a $370 stock so that seems perfectly logical, but the price of the stock does not determine its volatility, look at BIDU for example, a similar priced stock to AAPL, but too many shares in that could kill you! and your capital could take a serious hit.

100% agree Ian , Promise is a promise I just sold into strength my beautiful BRCM long and took $2912 .. Now I let momentum trader to chase the stock from this point on ward..

Also is that not great that market opens 64 points down and BRCM spikes up .. Wohoooo my thanks to the mighty VWAP engine .

This is the p/ L for the start of the day .

 

[Grey1]

And demonstrated very well thank you my man! and something that i am implementing into my trading. Too many times we just trade the same number of shares without paying attention to the volatility of the individual stock. With certain stocks, we do it sub-consciously; I mean if you normally trade 1,000 shares in a stock like AAPL then you obviously wouldn't trade 1,000 shares in google, but google is a $370 stock so that seems perfectly logical, but the price of the stock does not determine its volatility, look at BIDU for example, a similar priced stock to AAPL, but too many shares in that could kill you! and your capital could take a serious hit.

Ian

since you mentioned BIDU ,, look at the spread intra day . No one in his right mind should be trading such stocks intra day unless he is prepared to reduce his position size to minimum which by ,,, that time , the reward wont justify the trade ( Amount wise).. stocks such as AAPL , SNDK , BRCM are ideal day trader's stocks .

Market is going through consolidation and plenty out of phase signals ( short in 3 min long in 5 min ) so i be out for a while but be back later to finish the job when the volume is pumped into the market to synchronise time frames .

Grey1

 

[Danger Field]

Market is going through consolidation and plenty out of phase signals ( short in 3 min long in 5 min ) so i be out for a while but be back later to finish the job when the volume is pumped into the market to synchronise time frames .

Ouch! They were not supposed to know about that.

Based on your previous posts I know you know, but I wonder how many others realize the significance of sector or even market-wide changes in volume and why they presage a sync time frames?

 

[samtron]

Ouch! They were not supposed to know about that.

Based on your previous posts I know you know, but I wonder how many others realize the significance of sector or even market-wide changes in volume and why they presage a sync time frames?

Care to elaborate for the uninitiated like myself??

 

[ianh]

Ian

since you mentioned BIDU ,, look at the spread intra day . No one in his right mind should be trading such stocks intra day unless he is prepared to reduce his position size to minimum which by ,,, that time , the reward wont justify the trade ( Amount wise).. stocks such as AAPL , SNDK , BRCM are ideal day trader's stocks .


Grey1

I mentioned BIDU as an example of "What not to Trade" but to try to explain to people that even though the stocks are similarly priced, they are entirely different animals! I don't want to preach to experienced traders, but for the newbies of which we have quite a lot in the trading room, you really need to be aware of which stocks are comparitively safe,and which to avoid.

AAPL is currently trading about 30,000 shares per minute with a 1c spread
BIDU is currently trading about 5,000 shares per minute with a 15c spread.

I know which one I will trade?

 

[Grey1]

I mentioned BIDU as an example of "What not to Trade" but to try to explain to people that even though the stocks are similarly priced, they are entirely different animals! I don't want to preach to experienced traders, but for the newbies of which we have quite a lot in the trading room, you really need to be aware of which stocks are comparitively safe,and which to avoid.

AAPL is currently trading about 30,000 shares per minute with a 1c spread
BIDU is currently trading about 5,000 shares per minute with a 15c spread.

I know which one I will trade?

Sorry Ian I know what you meant . What I was trying to say was in other threads our newbies are advised to take HOT stocks which often carry huge Spread and not suitable for trading . Just meant to warn our young traders.

Sorry I came across different .

Grey1

 

[Grey1]

Ok i am done for today .

This is my final P/L . Not a difficult day to trade. up by $3904.95. Hope you all have done well. By the way have you all noticed how well BRCM performed ( up £ $1.50 ) to day even though the market tanked. That was evident from yesterday . Technical analysis at its simplest form does pay .

Grey1

 

[Grey1]

Just before the close i had a confirmed buy signal from the engine which i took the trade while watching Arsenal Against Barcelona.

This is the final account with the signal on the chart. I was going to go LONG 2000 MRVL and keep it over night as the relative strength of MRVL was rather high compare to the market , how ever since the stock 's momentum was exhausted just before close i did not.

Saying that I would still say that it would be a safe bet to have gone long MRVL for a gap up knowing that there is a good chance of DOW to have a technical bounce tomorrow .

 

[Danger Field]

Care to elaborate for the uninitiated like myself??

Sure. PM me.

 

[Jerry Olson]

Alert---bullish Percents Have Turned Lower

Hello everyone

over the weekend i'll be doing an extensive report on the current conditions of the Bullish Percents on P&F.

I have written here about the ridiculous prices of crude oil, and all metals and commodities saying they were accidents waiting to happen. they still are.

I have posted to my subscribers solid trades each day using triggers for shorts and longs, they do work everyone.

in the meantime about 1 month ago i recommened all traders take action on their long term portfolio's by using Put Options or moving to cash because of excessive sentiment and perception of the markets overall.

That has changed now. After we get this bounce for a few days i would suggest you short all rallies for a while till it changes back again some time just ahead of the next FOMC late June.

do not be brave, do not take losses, use your heads many stocks will not come back for a long time once they break lower levels of support , wishing and hoping is not the way to go.

cash is a real position to take during high volitility times in the market.

i wish you all the best of luck...we shall stay in scalp mode till the smoke clears...

 

[samtron]

Hello everyone

over the weekend i'll be doing an extensive report on the current conditions of the Bullish Percents on P&F.

I have written here about the ridiculous prices of crude oil, and all metals and commodities saying they were accidents waiting to happen. they still are.

I have posted to my subscribers solid trades each day using triggers for shorts and longs, they do work everyone.

in the meantime about 1 month ago i recommened all traders take action on their long term portfolio's by using Put Options or moving to cash because of excessive sentiment and perception of the markets overall.

That has changed now. After we get this bounce for a few days i would suggest you short all rallies for a while till it changes back again some time just ahead of the next FOMC late June.

do not be brave, do not take losses, use your heads many stocks will not come back for a long time once they break lower levels of support , wishing and hoping is not the way to go.

cash is a real position to take during high volitility times in the market.

i wish you all the best of luck...we shall stay in scalp mode till the smoke clears...

As a well known news service said today

"its a time to be cautious but not panicky"

good luck

 

[Grey1]

After the market opened I pair traded two semi conductor's BRCM againt MRVL as I was not getting any directional signal due to market consolidation . As I said before I am not good at gauging the market direction hence I hedged my postions. Things was going really well until Tradestation stopped all to gether and left me with a I/O error and a big hole in the data for the radar. SO i had to close the trades with $739.28 win minus costs.

I feel traders should learn how to hedge positions and trade professionally if the marke is indecisive like to day .

There are many ways of doing that and a search through Internet can reveal few techniques which is a must for all level of expertise.

I am posting the corrupted chart from TS and hence no more trading for me to day as VWAP engine will fire wrong signals due to the hole in the data. I have no doubt that i would lose if i trade with out my ENGINE.

 

[Trader333]

Iraj,

There is a way to fill the data hole which would then give you the correct VWAP signals. I think that you said that you now use Esignal which I am not too familiar with but it must be possible with them as well as other data providers.

On another note: Do you regularly run "Nighly Maintenance" on GlobalServer ?


Paul

 

[Grey1]

Could not resist the few awesome signal from the vwap engine after changing the MAXBAR settings to just before the hole in the data. I am up and out for $1164.28 for the day . It was a horrible and quite day .

paul

I found a way round it and yes i do run the maintenance on Global server.

 

[Grey1]

Gap Trade ( May 18th - May 19th )

yesterday just before the market close I took two over night position . 1000 LONG APPL @ 63.24 LONG RMBS @ 28.11.

I took the trades based on the following technical reasons.

Pro

1) market was hammered for three days and a technical bounce was more likely
2) Both stocks were very Oversold on daily as well as intra day ( two time frames confirmation ) with LOW MACCI.


Cons

1) I had no buy signal from the VWAP engine
2 ) MRVL could have come up with poor result after hours and taken RMBS down in sympathy


Correct postion size for RMBS based on yesterday's volatility would have been 1000 shares and 890 for APPL Near enough for me to take 1000 of each .

My strategy for these two stocks will be as follow:--

if both stocks gap up i will close on the second bar ( 1 min ) , if stocks gap down i will close after a technical bounce up on the second bar. I will stick to my strategy and will post P/L of the trades after market opens ..

 

[Grey1]

Gap Trade ( May 18th - May 19th )

yesterday just before the market close I took two over night position . 1000 LONG APPL @ 63.24 LONG RMBS @ 28.11.

I took the trades based on the following technical reasons.

Pro

1) market was hammered for three days and a technical bounce was more likely
2) Both stocks were very Oversold on daily as well as intra day ( two time frames confirmation ) with LOW MACCI.


Cons

1) I had no buy signal from the VWAP engine
2 ) MRVL could have come up with poor result after hours and taken RMBS down in sympathy


Correct postion size for RMBS based on yesterday's volatility would have been 1000 shares and 890 for APPL Near enough for me to take 1000 of each .

My strategy for these two stocks will be as follow:--

if both stocks gap up i will close on the second bar ( 1 min ) , if stocks gap down i will close after a technical bounce up on the second bar. I will stick to my strategy and will post P/L of the trades after market opens ..

Closed both pos as fast as i could because It was only meant to be a gap trade.