Spydertrader's Jack Hershey Equities Journal II

[ikkyu]

Greetings Everyone,

Thanks again for all the great material.

I have several question for anyone willing to engage me.

1.)How many money streams is everyone using? (i.e. the rough division of your trading capitol)

I have been using 3 stream virtual trading. This choice would seem to have great effect on the overall results.

2.) I have found that the signals sometimes come right before a slight correction. Are some folks using limit orders to avoid buying at an inopprotune time?

3.) In the original journal, SPYTRADER was taking profits at intermediate points. I got the impression that in his(her?) paper trading, GS19 was not doing so. I think this also would be a large variable on overall performance.

Are people going all or nothing on profits, or skimming on profitable trades?

While i think the latter is obviously profitable, it seems the former probably produces better long term results.

Please excuse me if these points have been addressed in the other 600 pages and i missed it.

Thanks a bunch,
john

 

[Spydertrader]

Quote from ikkyu:

1.)How many money streams is everyone using?

I use 4 capital streams for my trades, but do not recommend doing so for the new trader. Keeping track of the many nuances while battling the twin demons - fear and greed - often proves difficult. As a result, I recommend using small share size initially in an effort to reduce the cost of the inevitable mistakes which we all encountered when first trading these methods. After some time (and experience), scaling up to a psychologically comfortable level (with respect to share size) provides a safer (and more cost effective) path to success.

Quote from ikkyu:

2.) I have found that the signals sometimes come right before a slight correction. Are some folks using limit orders to avoid buying at an inopprotune time?

I use limit orders when I want to scale into a larger position, or in an effort to reduce my overall cost basis. Limit Orders represent a two edged sword. Sometimes, you enter at a better price when using Limit Orders, but in faster moving markets, the train often leaves some of the passengers behind (missed fills as the market moves away).

Quote from ikkyu:

3.)Are people going all or nothing on profits, or skimming on profitable trades?

In highly volatile equities, I often skim some profits along the way. If price bounces off an upper trend line, I prefer to take some profits here as well (rather than wait on the right side exit). However, such actions remain a personal choice. On equities which show a more gradually increase in price over time, I frequently allow the entire position to chug along until reaching my target exit.

I hope you find the above answers useful.

- Spydertrader

 

[AlpineTrout]

I've been in and out of this journal for a couple months, as well as the first journal. I've been an investor, a trader and a business owner for a long time, so being that I've been around block, I have to ask a few questions bluntly. I'm in no way trying to be rude:

1) I've seen some of Spyder's results over a year or two. The results are good, but not long enough to show a reasonably long track reacord. Has anyone ever seen reliable long term (at least 5 yrs.) results from Mr. Hershey or any of his students from Tuscon meetings or elsewhere, or is everyone here just taking it for granted that this Dry-Up system has worked for many years?

2) It seems to me that Mr. Hershey is genuine in his approach to teaching others his method without any compensation. I do have to say though that his writing style seems almost like it is meant to confuse the reader. If he is indeed bright, and I have read the work of many intelligent authors, that tend to be much clearer and more concise, can anyone that know him personally shed some light on this matter? Does he get compensated in anyway from these discussions or is he known to be a multi-millionaire from trading?

 

[Spydertrader]

Quote from AlpineTrout:

1) I've seen some of Spyder's results over a year or two. The results are good, but not long enough to show a reasonably long track reacord. Has anyone ever seen reliable long term (at least 5 yrs.) results from Mr. Hershey or any of his students from Tucson meetings or elsewhere, or is everyone here just taking it for granted that this Dry-Up system has worked for many years?

The MSN Web Site contains several examples of trades made back in 2003 by several individuals. I traded the methods part time for a year before moving to full time trading, and several months before beginning Journal One. The Tucson Meetings began 6 or 7 months ago. As such, few in that group have traded Jack's Methods for a long time. Jack has stated many times that he has traded these methods since 1957.

Quote from AlpineTrout:

2) It seems to me that Mr. Hershey is genuine in his approach to teaching others his method without any compensation. I do have to say though that his writing style seems almost like it is meant to confuse the reader. If he is indeed bright, and I have read the work of many intelligent authors, that tend to be much clearer and more concise, can anyone that know him personally shed some light on this matter? Does he get compensated in anyway from these discussions or is he known to be a multi-millionaire from trading?

Jack writes in a style which makes the reader work very hard to comprehend the meaning behind the words. In addition, Jack's liberal use of analogy often creates additional confusion between what Jack writes, and what Jack means. One needs to look no further than the videos I posted to see (hear) the difference between Jack's spoken advice and his written body of work.

Jack has stated many times his goal for sharing his knowledge. The transference of knowledge from one individual to another creates a lasting legacy of both wealth accumulation and education.

He receives no compensation for his efforts and continues to use his own private funds (some three to five thousand dollars) to purchase audio / video equipment to aid the Tucson Group Discussions.

Ask someone from Phoenix about the house Jack used to own there. The neighborhood wasn't exactly filled with tents.

- Spydertrader

 

[GS19]

cnms2 and gpzany
Thank you for your comments however all congratulations go to Spyder and Jack for their great teaching ability, both are outstanding individuals.

nzbryant
I trade about 2 or 3 hours a day preferring to put in a 2% trailing stop right after placing the order, however I may exit sooner if things look bad. In the evening I do my homework.

ikkyu
I sell 1/2 the position after a 5% gain as outlined at the end of the first Journal and calculate the trade gain on the total money made during the trade. I use limit orders except in fast moving stocks where market orders work better. I am concentrating on learning the method and improving the results.

 

[gooch87]

Quote from ikkyu:

Greetings Everyone,

Thanks again for all the great material.

I have several question for anyone willing to engage me.

1.)How many money streams is everyone using? (i.e. the rough division of your trading capitol)

I have been using 3 stream virtual trading. This choice would seem to have great effect on the overall results.

I use 3 streams also.


2.) I have found that the signals sometimes come right before a slight correction. Are some folks using limit orders to avoid buying at an inopportune time?
When I am at work, I will start using TTO orders in an effort to capture the price near the top of the channels when it comes time to sell. For entry into a new position or while I am watching the monitor, I use market orders.

3.) In the original journal, SPYTRADER was taking profits at intermediate points. I got the impression that in his(her?) paper trading, GS19 was not doing so. I think this also would be a large variable on overall performance.

Are people going all or nothing on profits, or skimming on profitable trades?
I will take profits if I think the trend is coming to an end. I start to watch very closely after 2% is earned.

While i think the latter is obviously profitable, it seems the former probably produces better long term results.
I think as my comfort level increases with time, I will let the stock move further before taking profits. Learn to walk before you run.
Please excuse me if these points have been addressed in the other 600 pages and i missed it.

Thanks a bunch,
john

Good trading to you

gooch87

 

[gpzany]

Quote from AlpineTrout:

I've been in and out of this journal for a couple months, as well as the first journal. I've been an investor, a trader and a business owner for a long time, so being that I've been around block, I have to ask a few questions bluntly. I'm in no way trying to be rude:

1) I've seen some of Spyder's results over a year or two. The results are good, but not long enough to show a reasonably long track reacord. Has anyone ever seen reliable long term (at least 5 yrs.) results from Mr. Hershey or any of his students from Tuscon meetings or elsewhere, or is everyone here just taking it for granted that this Dry-Up system has worked for many years?

2) It seems to me that Mr. Hershey is genuine in his approach to teaching others his method without any compensation. I do have to say though that his writing style seems almost like it is meant to confuse the reader. If he is indeed bright, and I have read the work of many intelligent authors, that tend to be much clearer and more concise, can anyone that know him personally shed some light on this matter? Does he get compensated in anyway from these discussions or is he known to be a multi-millionaire from trading?

Alpine,

you are a businessman.... and I presume you do research before committing to any venture...

So, how about try doing some simulated trading for a while and see whether Mr Hershey's system bears fruit?

If it turns out that it does, then you can commit real money...

Consider it your due digilence before buying a business....

As for long term track records, any business won't necessarily guarantee you ongoing success....

cheers.

 

[ikkyu]

Many thanks to everyone's thoughtful replies!

This is a great ongoing discussion.

I hope this week provides a nice bounce and plentiful breakout for everyone.

Kind regards,
john

 

[oddiduro]

Quote from gpzany:

Alpine,

you are a businessman.... and I presume you do research before committing to any venture...

So, how about try doing some simulated trading for a while and see whether Mr Hershey's system bears fruit?

If it turns out that it does, then you can commit real money...

Consider it your due digilence before buying a business....

As for long term track records, any business won't necessarily guarantee you ongoing success....

cheers.

The info that Jack provides is valid long term. The trading used here is a methodology more so than a system. It is a way of approaching the market. It gives parameters and sequences that lead to decision points. In this way you may use the methodology and tailor it to your specific markets needs.

Best Regards
Oddi

 

[mattjbarlow]

Quote from Spydertrader:

One then looks for The Stochastic Indicator to continue on above the 50 level (%K Line) - breaching the 80 level and pulling back - also on a daily chart. Later, one looks to see 'intertwining' of the Stochastic Indicator (14,1,3) - both %K Line and %D Line - and above the 80 level in order to receive a 'Hold Signal.'

This post cleared up some of my misinterpretations, thanks very much. Could you look at the following sequence and let me know if I'm on the right track? I'm still not sure when he says the MACD will breakout upward, if he is referring to the MACD (5,13,6) on a 5 minute fractal.

Setup with daily charts:
1. Find a stock whose Stochastic (5,2,3) has fallen rapidly to the 20% line and is (will be) turning up.
2. MACD (5,13,6) is on neutral and will be breaking out up and diverging.
3. Daily volume is its least ambient level (DU).

Signal with 5-minute intraday charts:
1. Price will idle and volume will be light and then accumulate.
2. MACD (5,13,6) will remain neutral.
3. Volume will approach DU before 11:00 AM.
4. Around this time, MACD will BO up and price will begin to move up somewhat.
5. You can buy when MACD breaks out and price begins to move up.

Confidence signal performed EOD with daily charts:
1. Look for the Stochastic (5,2,3) indicator to continue to the 50 level, breach 80 and then pull back.
2. Draw a channel by defining three points. Point 1 is the start of the price rise, point 2 is the first mini peak that forms as the first minor retrace begins, and point 3 is the end of the retrace.

Hold signal performed EOD with daily charts:
1. Intertwining Stochastics (14,1,3) above the 80 level.
2. Hold for as long as volume gets larger daily and MACD stays above neutral.

Cautionary note: Most people leave early when the stock falls through the trendline to some extent. Instead of doing this, use this as a new "point 3" and continue as before.