A 70k bet that I can't make a 50% gain in 2009
- Thread starter geez
- Start date
Hey snake,
I scan roughly 200 stocks each night, looking for extended stocks (in both directions) and stocks that look to be setting up buy/short patterns on the daily chart to play them intraday. I then scan the gap list in the morning to find early plays.
I always have a few charts that I will keep up all the time (RIMM AAPL SKF SRS ) along with the indexes.
SKF was setting up a buy pattern on the 5 min chart today and I had alot of banks/financials on short watch , so I took SKF long. I will try to get a way to post the chart of SKF for that entry.
Does this explain what you were looking for? If not, let me know. -G
I would add that his use of a hard stop in relation to his entry point to size his positions to remain within his risk parameters is most important to his success.
Quote from Mephistophilis:
stop and target are based on entry
Stop and target are based on price action. His position size is determined by the entry and initial stop loss.
This is a very interesting journal. Geez demonstrates excellent control, both technical and psychological. If I were wearing a hat, Geez, I'd be tipping it to you.
I disagree partially.I agree about the position size,I agree that the stop is based on price action,but his target is arbitrary.It could be 1.7 or 2.3.The "key" is that his target is always greater than the risk.So,Geez even if he has only 40% success would be still profitable.
Maybe sometimes his profit target is a little altered due to the presence of a significant support or resistance level.But,who knows in advance if these levels will not be violated?
Geez,
Good work on your results thus far. You seem to have a good plan and keep emotions out of the trade. I was wondering what software you use to scan for your nightly and morning scans?
Wolfpacker
Good work on your results thus far. You seem to have a good plan and keep emotions out of the trade. I was wondering what software you use to scan for your nightly and morning scans?
Wolfpacker
I'm not so sure the "disagreement" is all that important. The position sizing is the key component of his trading success with respect to the relation between his initial stop and his entry. And, as you note, the second key component to his trading success is his disciplined approach that sets a profit target that is greater than his intial risk, and that he has the mental strength to allow profits to run to his targets while always cutting his loss at no greater than his inital risk level.
So whether, as you say, Geez's profit targets are arbitraily set, or as I suggested, that those targets are based upon prior price action, i.e. support and resistance, the result, so long as proper position sizing is consistanty applied, will be the same - a consistantly profitable trading program. The one thing that we can agree is not arbitrary is his position sizing. The number of shares traded is always based upon the size of the inital risk.
And no doubt we both agree that Geez has produced a very interesting and worthwhile journal.
