Don's openings Part 3

maybe i should rethink if this strategy is for me. i'll give it two months or so to decide. i don't think i can justify holding through a 30 cent shakeout, when the winners seem to be about that large (though sometimes you can get a half, and even more if you turn it into a longer term day trade).

i did not hold through the shakeout in JPM, and got out with a 6 cent loss, and believe i did the right thing, as i could've booked a 30 cent loser.

i'll give you another example, also from today, where holding through would've hurt even more.

TGT. now this stock went against me by a quarter almost immediately. i waited about 5-6 minutes, but it just wouldn't come back in. i didn't get the best exit, as i could've got out with a 10-15 cent loss or so, instead of 24, but the stock eventually went to a price that would've given me a 60 cent loser.

so, if i would've held both, i would've had about a 9 cent winner in JPM (at best), and say a 50 cent loser in TGT, for a combined loss of 41 cents.

i got out of both fairly quickly, and totaled a loss of 30 cents in those two.
 
Originally posted by dafugginman
maybe i should rethink if this strategy is for me. i'll give it two months or so to decide. i don't think i can justify holding through a 30 cent shakeout, when the winners seem to be about that large (though sometimes you can get a half, and even more if you turn it into a longer term day trade).

i did not hold through the shakeout in JPM, and got out with a 6 cent loss, and believe i did the right thing, as i could've booked a 30 cent loser.

i'll give you another example, also from today, where holding through would've hurt even more.

TGT. now this stock went against me by a quarter almost immediately. i waited about 5-6 minutes, but it just wouldn't come back in. i didn't get the best exit, as i could've got out with a 10-15 cent loss or so, instead of 24, but the stock eventually went to a price that would've given me a 60 cent loser.

so, if i would've held both, i would've had about a 9 cent winner in JPM (at best), and say a 50 cent loser in TGT, for a combined loss of 41 cents.

i got out of both fairly quickly, and totaled a loss of 30 cents in those two.
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Keep in mind that this is consistent, high probability, play....which is very important. There is nothing wrong with cutting losses quickly, just watch to see if you are getting shaken out by the same stocks.

Hope it all goes well!!

Don
 
8 fills- 3 longs, 5 shorts. 5 wins, 1 loss and 2 scratches, grossed $1.02. I've cut my size from 1500 to 900 shares this week because I was concerned about extra volatility and lack of liquidity resulting from the holiday. Too bad because yesterday and today were good days.

Regarding losses, I get shaken out way too many times, but I'm learning how to handle stocks individualy based on my experience with them. For instance, TGT and HON seem to go against me and stay there forever, then show a wide spread that fakes me out before eventually coming in. I decided that I only want the good stocks, the ones that are predictable, have a high win % and I can read. So I just said 'screw it' and dumped stocks like that from my list. Over time, my list is getting refined down to more and more good guys.

Putting part of my position out for a slingshot fill, as Don calls it, often gives me some profit before the nasty reversals, which makes some bad losers only scratches. 20-30 cents is a big loss for me. I usually get out half my position when I'm down about 10 cents. If I don't see a reversal soon, I'm all out.

I'm usually watching 5-8 positions, so I can't watch the tape like a hawk. If I only had 1-2, I'd probably trade it differently.
 
Originally posted by Don Bright
My brother and I are " .......................

This 1 day workshop is only $299 and gives you much more than you would expect in a short period of time...............

See you there,

Don

http://www.stocktrading.com/html/be..._snake_oil.html
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Don,
Do you guys ever come to the east coast and offer seminars? The 1-day workshop sounds pretty good to me.

Got to work late on Monday and missed doing OO. But yesterday and today were decent. Made 55c on GE but lost 20c on BBY (again) today. I need to drop that BBY off my list. It trades like homebuilders. So hard to read it and figure out where he wants to go. I've been increasing my size by 100 shares every week. Still working on my exit strategy. Thanks Don for sharing.....
 
Don,

Back in December you posted a spreadsheet showing the stats you've achieved with this strategy. I was wondering if you'd be interested in giving us an update on the big picture since then with a current version of the spreadsheet.

I'm a real numbers guy and would love to have a benchmark to compare how I'm doing.

Corey
 
Originally posted by mrktrend


Don,
Do you guys ever come to the east coast and offer seminars? The 1-day workshop sounds pretty good to me.

Got to work late on Monday and missed doing OO. But yesterday and today were decent. Made 55c on GE but lost 20c on BBY (again) today. I need to drop that BBY off my list. It trades like homebuilders. So hard to read it and figure out where he wants to go. I've been increasing my size by 100 shares every week. Still working on my exit strategy. Thanks Don for sharing.....
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With the support of the magazine, we will be heading East. Definites are: Denver, Houston, Orlando, Atlanta, DC, and a few more "to be named later."

I hope to make 10 stops by year end, I really enjoy these seminars, and it gives me a chance to review traders sytems and techniques on the spot, which I think they really appreciate.

Don

PS Where are you?
 
Originally posted by lescor
Don,

Back in December you posted a spreadsheet showing the stats you've achieved with this strategy. I was wondering if you'd be interested in giving us an update on the big picture since then with a current version of the spreadsheet.

I'm a real numbers guy and would love to have a benchmark to compare how I'm doing.

Corey
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Sorry, Corey, but as I mentioned a while back, the regulators put the "Kabosh" on my posting the spreadsheet (claimed it was advertising to unlicensed traders). I am happy to show the daily results to all those who come to Vegas.....and it is still a very high probability play! I try to post up my dailies (which for some reason is ok...weird).

Don
 
3 of 6 --- +25, +22, -1, +3, -5. (take out another 3 cents for commissions)

i blew one of these very badly, should've been a quarter point winner instead of a scratch. oh well.
 
Originally posted by Don Bright


Don

PS Where are you?
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I'm in Big Apple. Hope you guys come here since this is where the most of the prop traders are concentrated. Took today off and couldn't believe my eyes when I turned on the CNBC. Who were buying all that s^@%. Oh well, there are opportunities everyday.
 
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