I plan to do the same thing with FMCN tomorrow. From the daily chart, FMCN looks like it still has room to run.
- Spydertrader
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Spydertrader's Jack Hershey Equities Journal II
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I plan to do the same thing with FMCN tomorrow. From the daily chart, FMCN looks like it still has room to run.
- Spydertrader
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Another great day of input 
Today was interesting, I held FMCN from yesterday, and I had a 9am meeting. So I put in a limit at 55 in case it opened strong... when the meeting ended at 9:30am, I checked and noticed I got filled and it was trading at 55.60... oh well, I made some green
I really missed the boat on GROW... I had an order in at 14.92 after it signaled... and I missed it. (damn day job distractions), I checked later and noticed the really nice move. It hit FRV... so there may be more room to run there... thoughts?
I am going to watch FMCN tomorrow for an entry, thanks to everyone for the input and great charts.
chaps
Today was interesting, I held FMCN from yesterday, and I had a 9am meeting. So I put in a limit at 55 in case it opened strong... when the meeting ended at 9:30am, I checked and noticed I got filled and it was trading at 55.60... oh well, I made some green
I really missed the boat on GROW... I had an order in at 14.92 after it signaled... and I missed it. (damn day job distractions), I checked later and noticed the really nice move. It hit FRV... so there may be more room to run there... thoughts?
I am going to watch FMCN tomorrow for an entry, thanks to everyone for the input and great charts.
chaps
no reason i could see to get rid of the GROW shares (if you held them).
however, my own past experience is such that i want to bank a rapid large increase.
when i saw my profit zoom up to about +5% within 15 minutes of my entry, i wanted out. (uber money velocity time)
if i had bought more shares initially, i probably would have sold 1/2.
i also could have re-bought when price settled back down around 15.30.
i'm not being very aggressive in my trading currently.
however, my own past experience is such that i want to bank a rapid large increase.
when i saw my profit zoom up to about +5% within 15 minutes of my entry, i wanted out. (uber money velocity time)
if i had bought more shares initially, i probably would have sold 1/2.
i also could have re-bought when price settled back down around 15.30.
i'm not being very aggressive in my trading currently.
Jack doesn't use his 'money streams' for money management purposes. He advises dividing one's available capital into four streams to maximize the rates of return. Each day, Jack asks himself the following question, "Do I anticipate the highest money velocity from holding or moving my money to another equity?" By correctly evaluating an equities position with respect to its individual 'natural cycle,' Jack can anticipate the likely price improvement per unit time for each stream. To understand this philosophy, one must divorce themselves from the concept of stop loss. Because the vast majority of us do not have the knowledge or skills required to trade at Jack's level of expertise, we cannot fathom trading without protective measures to insure maintaining our trading capital. For someone of Jack's acumen, this simply makes no sense - as it reduces the speed at which capital appreciates. Jack operates from a standpoint of excellence. As such, he positions himself to maximize profits at the highest possible rates. Dividing capital into several 'money streams' permits Jack to maintain one or several streams in rapidly appreciating environments, while at the same time, moving capital from lower appreciating rates of return into those equities which show signs of accumulation and rapid acceleration. Jack has stated he experiences a loss once out of every eight trades. As such, even when a loss does occur, he still has three streams of capital appreciating. In such an environment, a 'stop loss' mentality cannot succeed. As a result, Jack developed his 'stop offset' method which provides both 'wiggle room' for an equity, as well as, protection against significant draw down.
However, I do not recommend trading in the same fashion as Jack unless and until a trader develops the same acute ability to trade at or above Jack's stated rates of return. Until one does have the ability to truly read, Tomorrow's Newspaper, Today on a consistant basis, I recommend exercising caution to insure protection of one's capital. In other words, master crawling before one attempts to master walking, running or flying.
I hope the above helps clarify things a bit for you.
- Spydertrader
Great post! Thanks.
So, use a "stop offset" stop only to protect your position from outlier events. Don't wait for a trailing stop to take you out of your trade. Once your trade's price velocity begins to slow down, close it and open another one that's taking off. Don't sweat what's not working, or not working anymore.
So, use a "stop offset" stop only to protect your position from outlier events. Don't wait for a trailing stop to take you out of your trade. Once your trade's price velocity begins to slow down, close it and open another one that's taking off. Don't sweat what's not working, or not working anymore.
the reality is, the trades we are taking are running at a high money velocity....within a quality universe...within the natural cycle....
as such, the use of stop losses (as the majority makes use of them)...simply doesn't make sense.
one of the benefits of entring only high money velocity trades is that the thing needs to slow down before it reverses completely.
when a trade starts to go sour we're typically out with a small loss, wash, or small profit. which is the antithesis of drawdown if you're knocking out the +5 and +10% cycle pieces.
we only need to 'protect' our capital from as you say, the outliers... or as jack says 'news events'.
Going out on these types of stops is not the norm, and in fact should be rare by design.
the majority locks in losses using their stop methods...we on the other hand strive to keep losses liquid enough to get out at more favorable prices under all circumstances than the majority.
those are my thoughts anyway.
I apologize for the delay in posting this morning, but the market kept my attention this morning. I jumped back into FMCN this morning early on with another 200 share order. See attached.
- Spydertrader
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- Spydertrader
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