2012: The Battle for Survival
- Thread starter neke
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http://finance.yahoo.com/q/is?s=FIRE+Income+Statement&annual
Shows Fire has been growing revenue and profits. Not a company I would consider shorting unless I had insider knowledge.
Shows Fire has been growing revenue and profits. Not a company I would consider shorting unless I had insider knowledge.
This seems to been the pattern for at least the last 100 weeks with Neke.
Over 100 weeks of this ffs!!
Losing weeks bigger than the winning ones.
The reason has nearly always been adding to losing trades??
Add to winners, dump losers quickly. That is the best way to get the profit factor positive.
neke went through hell more times than you eat chinese buffet. your "advice" and many others' "advices" are childish and useless. Just shut up. Trading is much much much much deeper than you think. Just ask Corzine about it.
Yes, it establishes a trend higher in price and and profits over the longer term. Plus he is shorting a strong stock in a bull market. If I was wrong he would have made profits.
Thanks for the insight Dr. Devry institute of Trading
Going through "hell" is not a measure of success by the way, it's a measure of wasting time and being stupid. Spent half your life behind a welder? Good for you, now learn how to make money before you're labeled as the ultimate loser who can't make a buck in the place called America. Speaking of which, your PnL? LOL.....
edit: removed swears.........
Day trading FIRE or any stock that's "in play" isn't about long or short, it's about risk management.
FIRE opened with a huge gap into all-new-high territory. That means no one's in pain except shorts (and there were a helluva lot of them because the short interest going into earnings was 20%).
That alone doesn't mean the price will continue to rise. As a gap trader, the standard rule of thumb is to watch the reaction to the gap at the market open. As I recall when I looked at the chart for that day, the opening bar was pure green. That's known as a gap-and-go (as opposed to a gap-and-crap) and it's a signal to trade in the direction of the gap.
The huge short interest and highly positive earnings call provided plenty of additional long fuel.
If FIRE had spiked a bit and retraced the entire opening bar, that could indeed be a fader's short signal, always with an advance risk management plan, though.
I can't imagine working a day job and day trading. I've been working with a couple traders trying to do that and it is one tough row to hoe!
Study how to play those gaps, Neke, they can be really profitable, but you need to wait a bit for the opening emotions to give you a clue to what the majority of market participants are thinking.
Professional money managers would never think a huge gap into all new territory means price is "too high". They're looking to position for future gains and a breakout like that is signal to buy. They've been around long enough to have seen all new highs continue to become all new highs for months, even years (NFLX is a good example). These professionals are the ones who are moving price on volume. Ride along with them, don't fight them
FIRE opened with a huge gap into all-new-high territory. That means no one's in pain except shorts (and there were a helluva lot of them because the short interest going into earnings was 20%).
That alone doesn't mean the price will continue to rise. As a gap trader, the standard rule of thumb is to watch the reaction to the gap at the market open. As I recall when I looked at the chart for that day, the opening bar was pure green. That's known as a gap-and-go (as opposed to a gap-and-crap) and it's a signal to trade in the direction of the gap.
The huge short interest and highly positive earnings call provided plenty of additional long fuel.
If FIRE had spiked a bit and retraced the entire opening bar, that could indeed be a fader's short signal, always with an advance risk management plan, though.
I can't imagine working a day job and day trading. I've been working with a couple traders trying to do that and it is one tough row to hoe!
Study how to play those gaps, Neke, they can be really profitable, but you need to wait a bit for the opening emotions to give you a clue to what the majority of market participants are thinking.
Professional money managers would never think a huge gap into all new territory means price is "too high". They're looking to position for future gains and a breakout like that is signal to buy. They've been around long enough to have seen all new highs continue to become all new highs for months, even years (NFLX is a good example). These professionals are the ones who are moving price on volume. Ride along with them, don't fight them
Neke's been doing the same trades for quite some time now. Somehow every once and a while, you'll see him adding to losers continuously until an outsized loss results.
The simple remedy is just to stop adding to losers. But the problem I'm guessing with Neke is that averaging down until a loser becomes a winner is his typical methodology to begin with, in which case there's nothing to be done. Because otherwise he seems to have learned nothing over the past year. And if he keeps looking for these kinds of moves to fade in '12, it will only get worse. 7000 shares of FIRE? For a daytrade? Kinda insane in these markets.
A sign that you have an edge is that you should be able to cut all losers quickly and never have to average down, and you will come out ahead. Neke may indeed have an edge but may be too impatient for a slow and steady comeback.
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