Simple Strategy, effective?

[arzoo]

dsguns,

i was wondering, what entry setup do you look for when buying on the pullback? and do you rely on indicators also or just bar/candlestick patterns?

 

[dsguns1]

Thats amazing that he does that and hasnt been crushed yet.

 

[easyguru]

and some people want to sale it as a strategy by by creating elaborate web sites and multiple handles on elitetrader.

 

[dsguns1]

easyguru,

What do you mean?

 

[dsguns1]

arz,

From a tech. standpoint. I generally look for a pull back to the trendline and look at volume. If there is a big spike in volume associated with the pullback, then Ill put a stop in and watch the rest of the trade. If the reversalk is confirmeed, then I generally will start doing the same thing from the other side.
Its also important to know stop levels. I thin market psyschology tells you that the market generally trades to stop levels.
But more impiortantly I think its a feel thing, kind of one of those intangible trader assets. But once you are riding the wave, dancing with the market, whatever trader metaphor you want to use. After doing it for awhile you get the feeling of what is going on, and you go with it.

 

[overload]

Quote from waggie945:

Try selling a boatload of S&P 1140 Calls on the futures, NAKED a couple of days before expiration . . . put the gun to your head, pray that Osama bin Laden isn't captured and pray the night before expiration that the S&P doesn't GAP to the upside, taking your entire account with it!

waggie945: LMAO!

 

[waggie945]

Don't laugh buddy.
Our good old friend James "Romeo" Stock does it EVERY SINGLE MONTH, with tremendous success!~

 

[dsguns1]

On what kind of size? And wha kind of risk/reward are we dealing with here?

 

[Mecro]

Quote from waggie945:

Don't laugh buddy.
Our good old friend James "Romeo" Stock does it EVERY SINGLE MONTH, with tremendous success!~

I doubt how true that is.

But lets even if he is successful every month. It is still an idiotic way to make money. Limited reward and unlimited risk. If supposedely he is that accurate, then WTF is he capitalizing on it the worst possible way.

 

[Trend Fader]

Quote from dsguns1:

After all the threads I see on, no matter how informative (I escp care for the psych. section). Ive found, after trading for eight years, the best strategy for me has always been this:

buying pull backs in uptrends, and taking a couple smal profits, letting the remainder run with a trailing stop. and doing the reverse in down downtrends. I am doing this as a scalping strategy and have found that it is the only way to be "riding the wave". Once I have too much in the way of technicals, I tend to get analysis paralysis. Does anybody else concur? I also like to keep my market slightly off the inside market, jsut a MM would do for example in an uptrend, I may be willing to buy 2-3 ticks into a pull back and offer out on the way back up.

the only time I dont do that is on a big volume spike, wher THEN, I would go to my technicals and look for signs of a reversal.

Nobody ever went poor taking profits. Once you can be consistent with this. its just a mtter of putting size to it to grow your profit curve.

I did this from '99-'02 (even in the bad equity markets) in CSCO and JNPR, trading on average 1,000,000+ shares per day. And now I am considering doing it in the BUND/Bobl markets.

does anyone want to back me up on this? Also, does anyone use this simple strategy in those markets and how does it work?

Feedback and comments are appreciated.
dsguns1

DSGUNS1,


What time frame do you use ... i guess 1 min chart?

How do u determine if the market is trending?

What do u do if u trade jnpr or csco and they go through multi days of chop?




--MIKE