Great New Pattern

Originally posted by Rigel
Hello everybody. I've been papertrading full time for about 2 months so my experience is really limited. I am focusing on intraday trades only. I'm considering taking a small position on POWI (300sh)intraday for the next 2-3 days. The 6 month chart with day bars looks like it might fit this pattern, it looks good to me. Any advice?
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Hi Rigel It has some promise. The key with trading is to have a predetermined risk which isn't something you posted. Don't plan on days of being in it, but have price targets for both sides, especially if it goes against you. If you are long what is the maximum amount you are willing to lose? Look at the stock and determine your stop (exit area) use this to figure out how many shares you should buy. 300 might be too small or too big depending on your goals/risk.

Risk per trade is = Your entry price minus your stop multiplied by the # of shares. As a trader it is one of the only things you can control.

Ok now that I covered that. Most of the trades posted earlier look "ok". I prefer things that are more extended from the bases. So I've really got nothing to report for what I'm seeing for long side (PTA still though--I didn't like that the volume dried up) on short side I might play KKD again , FDP, and PGR. Overall not too many setups according to my screeners. Sometimes the best trade is not to trade. I'll trade the stocks mentioned above, and maybe some gaps, volume scans, or a 9:00 PST dumper reversal.

rtharp
 
Hbio lockup just occurred. I bought 7k at 7.4. snet twpt, he's the seller. 10:57
15:10 Im gonna go out on a massive, and pretty dangerous ledge and call a tradable usg bottom. I have 8600 from the 4.3's, im thinking of adding if it makes a hod. Im not sure if im holding overnight. Do your own dd, it is rather risky b/c of bankruptcy stuff, but I think it's due for a point bouncer. I doubt im taking more than 15k home though if I take any home. Im gonna start scaling out of hbio over 8.
 
tc, it's not close. You want down a lot over many days. That's just a trend break. Im now long a lot more usg, but tight stop. I think that with the sp 400 deletion from the close yesterday, and the green candle, it probably bottomed, or at least most of the sellers are done. I intend to buy way more if it gets over 4.5
 
Originally posted by praetorian2
tc, it's not close. You want down a lot over many days. That's just a trend break. Im now long a lot more usg, but tight stop. I think that with the sp 400 deletion from the close yesterday, and the green candle, it probably bottomed, or at least most of the sellers are done. I intend to buy way more if it gets over 4.5
10:01 i now have 21k of usg, looking for pullback to get another k. IM starting to sell my hbio up 1.
10:55 I sold 4k of usg up .4 at 5. I figure it forms some resistance. Im still hoping for a shake, but I doubt If I will get it. It's hard to ignore a half point profit though. I will probably continue to do like 2500 every dime up from here. I have 17k left. My stop is the low today.
12:00 IM all out hbio. I made only a half point profit. I don't know how much higher it goes. I hate nasdaq when I'm doing size, but I'll take 3500 bucks any day. Im also out of most usg at around .9. I have 7k left. If the market strengthens, I'll buy more usg. IM probably not selling these ones unless I'm stopped out though.
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I 've been doing 10 fold better on the opposite of this pattern shorting heavily overbought stocks. You can use a really tight stop (pennies) and when you are right make a killing I didn't post it as it wasn't ideal but am short KG today at 54.13

oh I forgot I finally legged out of PTA. Yech! well that's why you always have stops and predetermined risk. It worked for a few days. If it breaks again I'll probably get in.
I covered about an hour after posting this.

I then shorted it 3 more times the same day. I would post a huge one minute chart and pull up a slow stochastic. Everytime the stochastic would get to overbought I'd start selling slowing it would soon turn around and I'd cover. Usually risking .20 and making .20 but an extra $200 a day isn't bad.


I might short it again but will probably just move on. LH looks like it deserves my attention.



As a quick update there is a bidderon LH at 159.5 for 30,000 shares. If this is broken through then we go through. I reduced my position somewhat just to be safe till we break this.
rtharp
 
Is there enough interest here to start tracking these trades real-time in a room? It might be very productive to have a half dozen people each closely monitoring a couple of potential reversals.

Mr. Tharp, do you have chat set-up on your site?

What do you guys think?
 
I currently track these with dustin and a few other traders on im. I guess I would be willing to move to a room, but only if the traders I'm with go with me. I'm sure we'd find em faster, but if a whole room decides at the same time to buy, we'll just juice it. Here everyone notices during a 30 min period or so.
 
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