Don's openings and more for 2005

I'm curious if any of you guys ever try to play the earnings stocks by putting WAY out there envelopes. CCU today would be an example. I took it off my list. But I'm wondering if a superwide envelope might be the trick. Maybe with a reduced position size just to keep the damage from being wrong to a minimum?
 
2 fills 500 shares each

2 long +195.00

blocked ccu and may..

- 1 / + 1 %

most times if you trade earnings or other stocks with hard news you get smoked....

ccu would have worked great if you did it...but it takes big kahoonas...


got out to soon... :(
 
Quote from Shreddog:

I'm curious if any of you guys ever try to play the earnings stocks by putting WAY out there envelopes. CCU today would be an example. I took it off my list. But I'm wondering if a superwide envelope might be the trick. Maybe with a reduced position size just to keep the damage from being wrong to a minimum?
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My guess would be if a stock opened outside your WAY out envelope, it would have a good chance of going WAY WAY WAY against you before turning. All a matter of how much risk you can handle. Personally I pull all earnings stocks.

Rough week this week, net loss of 54 cents a share. HPQ clipped me yesterday...
 
Sometimes I will put in a 100 share order just so I'm involved and can watch it. If it looks good, then I will pile in, if not, no big deal. If I don't do that I'm often too busy with my regular fills and I forget.
 
I'm done for February, since I'll be travelling Monday.

Traded 17 out of 19 days
$12,600 gross
$8,300 net
83 fills. 42 long, 41 short
44 wins, 14 scratches for a 64% win rate
Average fill rate 7.1% using a .7% envelope
Average size about 4,000 shares

Only two losing days, but they were doozies, -1600 net on the 2nd, -2200 net on the 15th. Trading from a hotel room that day and probably cost myself an extra grand by not being familiar with trading on my laptop. Best day was +2800 net on the 1st.

Good luck in March.
Corey
 
Quote from lescor:

I'm done for February, since I'll be travelling Monday.

Traded 17 out of 19 days
$12,600 gross
$8,300 net
83 fills. 42 long, 41 short
44 wins, 14 scratches for a 64% win rate
Average fill rate 7.1% using a .7% envelope
Average size about 4,000 shares

Only two losing days, but they were doozies, -1600 net on the 2nd, -2200 net on the 15th. Trading from a hotel room that day and probably cost myself an extra grand by not being familiar with trading on my laptop. Best day was +2800 net on the 1st.

Good luck in March.
Corey
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Excellent result. Correy, do you tolerate shakeouts if the stock didnt go immediately in your favour? I noticed you also have large number of orders and fills which sometimes made it difficult to watch every stock very closely.

This month is abou flat for me, did a lot on commissions. I just noticed much more shakeouts than previous month. Also earning or news stocks tended to cause big losses when I tried to place OPG.
 
Quote from Shreddog:

I'm curious if any of you guys ever try to play the earnings stocks by putting WAY out there envelopes. CCU today would be an example. I took it off my list. But I'm wondering if a superwide envelope might be the trick. Maybe with a reduced position size just to keep the damage from being wrong to a minimum?
More...

In my experience, it's a crap shoot. I've seen it work real well sometimes and real bad others. However, with prudent money management and quick fingers (or automated software, there is potential).
 
Yes, I sit through lots of shakeouts. How much depends on my familiarity trading the stock and the action on the tape. I averaged 5 or 6 fills a day for February, which I am quite comfortable handling. More than a dozen and things start to get tricky.

Quote from danjos:

Excellent result. Correy, do you tolerate shakeouts if the stock didnt go immediately in your favour? I noticed you also have large number of orders and fills which sometimes made it difficult to watch every stock very closely.

This month is abou flat for me, did a lot on commissions. I just noticed much more shakeouts than previous month. Also earning or news stocks tended to cause big losses when I tried to place OPG.
More...
 
Quote from lescor:

Yes, I sit through lots of shakeouts. How much depends on my familiarity trading the stock and the action on the tape.
More...

Have you concluded from your trading records that sitting through a shakeout (and risking a big loss) came out to be more profitable than taking a small, immediate loss when the trade goes against you?
Thanks.
 
Just checking in with everyone, didn't want to be conspicious in my absence. I've been pretty sick since the show in NYC, but should hopefully be back at it this week.

Good luck to everyone!

Don
 
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