Day Trading - A successful method for losers

Status
Not open for further replies.
More info on how I trade...

I've attached an exel spreadsheet that contains all my notes for the following day. This sheet is a "quick glance" type sheet which I will need to place a trade. The most two most important columns are: vol/ 1/4 hr and pivot. During trading hours, when an alert is signaled, I changed the color of the signaled block to grey. This helps me anticipate the breakouts easier. I don't have to concentrate as hard on the values in the list, just the color changes.

If anyone out there wants to give my trading plan a whirl, use the trading sheet and when the pivot point is reached with the required volume, buy it. Place a 1% sell stop below your price and try to make 1%. Don't be greedy - take your 1%. You could move your sell stop up to the 1% mark and let it ride higher, but let's not get too optimistic.

BTW, I deleted one stock from tomorrows list. It was WSBA. It had a fairly nice pattern, but the volume was too weak.


and yet another BTW: I've got a meeting tomorrow morning, so I'm going to miss 1/2 the trading day ( I hate it when work gets in the way of my trading). I've found that the first half of the day has most of the breakouts, so I'm not expecting to trade tomorrow.

Good luck to All
 

Attachments

Missed today's trading. Was not able to access the market for most of the day. I came home late, pulled up my trading info and found a possible candidate. The stock was EIX. I considered buying it, but decided against it because I had just opened the chart and really didn't have a "feel" for the strength of the stock at that moment in time.

I decided to post the paper trade instead. I know this bothers some of you out there, because there is no money on the line and emotions are different without cash, but when you look at what I've posted as successful trades and this paper trade, I think you'll see that this is a useful piece of information.

Check out the attachment - comments are welcome.

Again, I apologize if this offends anyone.
 

Attachments

Markets fell below the levels I stated yesterday. I checked the futures market. The futures are way down (probably due to YHOO's poor earnings). After looking at the width and slope of the new channels, I believe that the markets need to correct even more than I originally thought. I'm going to have to take a cautious position until I see channels I can believe in.

I've assembled my watch list for tomorrow. I've attached it to this post. Please feel free to comment.
 

Attachments

INTC's too.
http://biz.yahoo.com/ap/060117/earns_intel.html?.v=8
Quote from smashandgrab:

Markets fell below the levels I stated yesterday. I checked the futures market. The futures are way down (probably due to YHOO's poor earnings). After looking at the width and slope of the new channels, I believe that the markets need to correct even more than I originally thought. I'm going to have to take a cautious position until I see channels I can believe in.

I've assembled my watch list for tomorrow. I've attached it to this post. Please feel free to comment.
More...
 
Quote from smashandgrab:

Markets fell below the levels I stated yesterday. I checked the futures market. The futures are way down (probably due to YHOO's poor earnings).
More...

Not just Yahoo -- Intel, AMD, GOOG -- it's a bloodbath. Probably the buying opportunity of the year :eek:
 
There's a saying: "Don't try to catch a falling knife!". Be careful ...
Quote from SideShowBob:

Not just Yahoo -- Intel, AMD, GOOG -- it's a bloodbath. Probably the buying opportunity of the year :eek:
More...
 
Hi cnms2,

Here's another saying, "no pain, no gain"! I've learned that there is always' opportunity. It just might take more hard work to find.

After reading sideshowbob's reply, I will tighten up my standards. Seeing a couple of the big Cap's take a fall is enough for me to put the brakes on and only trade when "all the moons are in alignment". With a blood bath taking place, finding opportunities might take a bit longer, but they still present themselves, just not as frequently. I'll have to concentrate harder and take less chances. "Sure picked a bad day to stop sniffing glue".

This is also a time to work some shorting strategies (on paper). If anyone has a method of shorting they use with success, please feel free to elaborate.

As for tightening the standards, what I intend on doing is scrutinizing my stock list. I'm going to pick only bases that I feel are the best (volume spikes with volume dry-ups, good support near the pivot, last price very close to pivot price). This greatly reduces risk.

The big factor in knowing a stock is truly breaking out is the spooling volume. Spooling volume for me is best when the stock is accumulating small blocks very quickly. One giant block of volume is meaningful, but not nearly as meaningful as a bunch of small blocks that add up to the value of the big block in about the same about of time. In good times, I relax my standards and consider both for break outs, but in bad times I only consider a spooling volume.

Just checked the futures market - 7:50am. The NASDAQ futures are a whopping 35 points down - ouch! This is no falling knife - this is a guillotine. I think I'm going to watch from the sidelines today.

Good luck to you and to anyone currently in the market!
 
Just a quick update...

I bought and sold SIGM today for a 1.5% profit.

Trade:

bought 1000 shares of SIGM at $16.53

sold 1000 shares of SIGM at $16.69

reason for sale: break of trendline


I probably could have held longer, but I chose not to be greedy. I've learned with this method of trading that there is always another "train coming down the tracks". I can hold at another time when I feel more comfortable.
 

Attachments

Market channels are still looking good. The slope and width of the NASDAQ and the S&P have both corrected to acceptable levels. I'm not feeling as cautious as I was yesterday. Full steam ahead, damn the market makers...

Here is my stock list for tomorrow. I have meetings most of the day, so I might not get a chance to trade.

NOTE: keep an eye on AIRM. I've made money on this one recently. It's pattern looks nice and it moves nice intra-day. I'm hoping it pops while I'm watching.

Good luck to all.
 

Attachments

Status
Not open for further replies.
Back
Top