This is just an observation, but most of the stocks in my universe are impossible to borrow from my broker.
Spydertrader's Jack Hershey Equities Journal II
- Thread starter Spydertrader
- Start date
- Status
This is just an observation, but most of the stocks in my universe are impossible to borrow from my broker.
As many of you already know, I head to Tucson, Arizona early tomorrow morning. I plan to return next Monday evening, and look forward to an interesting trip. In the meantime, good trading to you all.
- Spydertrader
- Spydertrader
spyderus, u shorted today, innit[?]
have u got a universe of stocks for sellin' short as well?
those misssin' earnings that react goin' down more than 5% [best are those down 10-13% at open]usually trend very nicely from the openin' bell to the close..am talkin' about stocks that are not fancy or sexy and that usually are not active at all, but that do quite a bit of volume just followin' the report or a downgrade..an example today would be cell, even tho it usually pretty active was a beauty to short; fantastic clear cut trend... i just forced myself lately to take advantage of the opportunities in shortin' even tho i had to go against my instincts, and i find it much easier to predict if stocks openin' down will trend or not due to a clear trend set-up right off the gate...i can say now f*k longs and focus on sell...this mkt is definetly skewed on the downside, innit[?]
have u got a universe of stocks for sellin' short as well?
those misssin' earnings that react goin' down more than 5% [best are those down 10-13% at open]usually trend very nicely from the openin' bell to the close..am talkin' about stocks that are not fancy or sexy and that usually are not active at all, but that do quite a bit of volume just followin' the report or a downgrade..an example today would be cell, even tho it usually pretty active was a beauty to short; fantastic clear cut trend... i just forced myself lately to take advantage of the opportunities in shortin' even tho i had to go against my instincts, and i find it much easier to predict if stocks openin' down will trend or not due to a clear trend set-up right off the gate...i can say now f*k longs and focus on sell...this mkt is definetly skewed on the downside, innit[?]
I use the same Universe of Stocks for shorting as I do for entering into a long position. They key to the whole system starts with a Universe of "High Quality Equities" selected using specific fundamental parameters. Moz posted a copy of some guidelines Jack used with respect to short trades back in Journal One. Moz also mentioned a specific post on ET where Jack again mentioned the importance of "High Quality Equities" in short trades. Whether choosing to short as price bounces off the upper trendline, or using a breach of the lower trendline to initiate a short, depends on one's tolerance for risk. However, without movement (either to the long side or on the short side) profits fail to pile up at a beneficial rate.
- Spydertrader
Over the last three and a half months I traded both long and short. Actually due to the overall market conditions I had more short trades, and they usually yielded better. I didn't trade retracements of uptrending channels. I traded traverses in downtrending channles, i.e. AAPL, AKAM, AMR, BA, BRCM, SNDK, QQQQ, and others. They don't satisfy the High Quality Universe requirements, but my results confirm the wider validity of Jacks concepts about channels, price-volume, MACD & Stoch indicator set, gaussians.
I know that this is outside this thread's main topics, and it was only intended as a side note to the last couple of posts about stock shorting.
I know that this is outside this thread's main topics, and it was only intended as a side note to the last couple of posts about stock shorting.
i just dont understand the necessity for a stock to fill into the parameters u use IF u trade intraday. i know that's part of your strategy but i mean, if the set up is very clear and u see that there's a chance to make full percentages gains, why not take it[?] better to keep an open mind, no? dunno, maybe u dont feel at ease tradin' stocks outside your pre-selected universe, but sure u cut yourself off from many good opportunities and renounce to the process of learnin' a new stock's behavior that might be useful in the future.
The Universe of Stocks changes slowly over time. In fact, not a single equity in the Universe today held a spot back when I began the first Journal over 18 months ago. Each month, some stocks fail to measure up and fall off, while other equities rise to take their place. In addition, following the same stocks day in and day out, allows the trader to gain a certain level of familiarity with these equities. Such familiarity provides an improved level of anticipation of trend direction. Since so many ways exist to make money trading the various markets, I'm not adverse to trying new things. One should always 'keep an open mind' as you point out. However, for me, sticking to what works includes sticking to what I know.
Thanks again for the advice, and I'll see you in the ET chat room upon my return from Tucson next week.
- Spydertrader
First, keep in mind the 'stops' recommended in this Journal work in such a way to avoid a huge loss from an unforeseen event, and not, as a desired exit point, or to reduce overall loss. Using a stop offset method for setting stops (as described in the videos linked earlier in this Journal) works rather well toward this goal. Also, avoid placing stops at 'common' areas - popular support / resistance points. One often sees a 'bounce' off these areas with respect to price. Lastly, with good discipline, one can employ 'mental' stops rather than 'hard' stops.
- Spydertrader
- Status