Spydertrader's Jack Hershey Equities Journal II
- Thread starter Spydertrader
- Start date
- Status
Currently, I have my stop set at $27.04 USD. However, I expect this to rise as we move forward. In addition, I have purchased 200 more shares at the $27.52 price point - 1600 total.
- Spydertrader
PWEI counterpart LMS is also moving nicely together....Just thought I would pass that along....LMS is showing a little weakness currently after its 11% 2 day move..
$COSTAverageMAN
$COSTAverageMAN
Quote from chapper:
I don't mean to pry, but I have a question about the post from Grob... is there a website concerning this methodology coming out? That would be cool
During our conversation Wednesday, Jack mentioned that he hoped to have a web site up sometime in the near future. The web site would contain files helpful to learning the Hershey Equities Method (and futures trading). As the folks in charge of web site creation move closer to launch mode, I'm confident someone will update the status here.
Quote from chapper:
Sounds like Spyder is backing up the truck on pwei, good luck with that one
I currently hold all 1600 shares, and plan to do so until at least Monday morning. I considered purchasing additional shares as we went into the close, but decided against it. My current risk stands at just over 1%.
We had a number of nice movers today: GROW, BTUI, RATE & TIE - just to name a few. Jim Cramer helped along the cause of SIRF last night by plugging it on his Mad Money show. Crazy stuff.
Good Trading.
- Spydertrader
Several variables determine how I choose to enter a trade. In a highly liquid, narrow spread, and slow moving market, I normally fire off a market order for a portion of the size I want for the entire trade. After determining what (if any) effect my order had, I then send off more orders until I have purchased all the shares I want. Sending too many shares at one time for many of these equities causes the market to move - and not in one's favor. Today, the bid / ask spread for PWEI stayed relatively wide (compared to other stocks I have traded) so I attempt to scale in by sending in smaller orders at various price points. Sometimes, I get burned by attempting to finesse my way into a trade in such a fashion, and I end up missing out on purchasing a full compliment of shares before the stock heads much higher. In the case of PWEI, I entertained the possibility that I might be buying at the top of the daily range. As a result, I scaled in a little at a time in order to have the opportunity to improve my average share cost should my concerns (over buying the top) come to fruition. When the morning downward price spike occurred, I simply assumed 'somebody' targeted popular support / resistance stops, and I bought the over reaction.
My maximum risk is 2%. Since capital preservation remains my top priority, I try to make every effort to stay underneath this maximum risk amount.
Enjoy the weekend.
- Spydertrader
In Journal One, I used a 2% stop followed up by a 5% trailing, then tightened up all stops as I reached the end of the maximum hold period, but I now use more channel based (Jack's Stop Offset) methods for stops. The reason for this change has to do with trying to create watch lists of stocks as described in the Bruno R post. In addition, Jack's Too Long Post provided some insights into the necessity for altering my methods slightly (to move to the next level). Keep in mind when using any stop (including a 5% trailing stop), I still maintain the risk maximum of 2% of equity.
- Spydertrader
- Status