Spydertrader's Jack Hershey Equities Journal II

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Gooch/Spyder

I am missing something (I hope)

I have been trying get a little profit from little Bruno/Beginner Rocket trades, but everytime I let Stoch 14/1/3 run my trade it seems that is a lagging indicator that allows me to wash out with no profit:

I'm using 5 min. charting: finding a (IMO) solid channel, buying in when MACD is positive, and Stoch 14 crosses 80, holding the position until it crosses down past 80 and closing out the position...

If you have played with this, what misteps am I probably looking at: Volume? Plus, Stoch at 5 minute charting can cross 80 for this second, and then trend out before the five minute finishes for charting: is this where I'm screwing up, not waiting until the stock solidifies at 80+ on the full five minute chart? Am I missing another indicator that this move doesn't have the momentum for gaining a profit?

PS- I'm choosing strong stocks (high rankings from stocktables, but not neccisarily from the DU Final Universe, most of those have volume that is so low it makes me nervous for minute to minuet trading)

Thanks for the advise.
 
Hi Penfold,

You should probably read journal one and this entire journal too at least once. This will give you the foundation you need to be successful with this method. Here is a link to the last journal that gives you the step by step process for building a Final Universe that will work with the chart settings that we use.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777&perpage=6&pagenumber=343

Absolute has just started his or her journey and Spydertrader recommended the same thing.

If you want to skip the reading then just follow the links below for the info your looking for.

Here is a link to a page where the rocket is discussed. http://www.elitetrader.com/vb/showthread.php?s=&threadid=56555&perpage=6&pagenumber=321

Here is a link to a page where they talk about the bruno_r setup
http://www.elitetrader.com/vb/showthread.php?s=&postid=1030095&highlight=brunor#post1030095
I sincerely hope you read both journals before trading this method and I look forward to reading about your success.

gooch87
 
Jack Hershey's documents:
-rockets
-icebergs

When you consider the stochastics be careful to differentiate between the slow set of parameters (14,1,3) and the fast set of parameters (5,2,3), also between the fast line and the slow line for each one of the above.
Quote from gooch87:

Hi Penfold,

You should probably read journal one and this entire journal too at least once. This will give you the foundation you need to be successful with this method. Here is a link to the last journal that gives you the step by step process for building a Final Universe that will work with the chart settings that we use.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=38777&perpage=6&pagenumber=343

Absolute has just started his or her journey and Spydertrader recommended the same thing.

If you want to skip the reading then just follow the links below for the info your looking for.

Here is a link to a page where the rocket is discussed. http://www.elitetrader.com/vb/showthread.php?s=&threadid=56555&perpage=6&pagenumber=321

Here is a link to a page where they talk about the bruno_r setup
http://www.elitetrader.com/vb/showthread.php?s=&postid=1030095&highlight=brunor#post1030095
I sincerely hope you read both journals before trading this method and I look forward to reading about your success.

gooch87
More...
 
Remember that Jack's "Beginner Rockets" document is not the same as the "Rockets" we've been discussing here. It's a separate approach to trading index futures.

I asked Spydertrader about this a few days ago in this thread.

A side note: The "Beginner Rockets" document is actually very interesting. I traded it in my IB simulated trading account and it worked pretty well on the ES contract.
 
Seems I have behaved like the newbie I am (very embarrasing) - I will spend today OFF the market and read the first journal thoroughly, (taking notes along the way) - I did not read it all the way through, just kinda skimmed over it... thank you for pointing out my shortcoming of knowledge in such positive/supportive ways!

Good trading today!
 
Purchased 200 shares of TRLG this morning. I plan to add on if price heads higher.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1051236>
 

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As TRLG just exceeded calculated FRV levels, and Stochastics (14,1,3) currently show an 'intertwining' above the 80 level, I Plan to hold TRLG at least until tomorrow. I anticipate an exit when Stochastics (14,1,3) falls below 80 on a daily chart.

- Spydertrader
 
I'll be watching how this unfolds. Will it breakout from the red downwards channel? It has nice momentum ... But it's the 6th day of a mini rally, and I'm thinking about the natural cycle of 6-8 days.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1051570>
  • <font class="quo">Quote from Spydertrader:

    As TRLG just exceeded calculated FRV levels, and Stochastics (14,1,3) currently show an 'intertwining' above the 80 level, I Plan to hold TRLG at least until tomorrow. I anticipate an exit when Stochastics (14,1,3) falls below 80 on a daily chart.

    - Spydertrader     </font>
 

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