Hi Ulmer,
I'm quote new at all of this also - so apologies in advance if I get something wrong here.
The answers to the questions below are my own interpretation after reading both journals, so first and foremost, I would recommend reading both of them fully, before you start trading.
Quote from ulmer:
I am new to here. I read the first 150 pages of journal I, and then jumped to the last few pages of journal II since I cannot wait to trade.
Patience is, I have found, one of the most important aspects of trading. Both of these journals are littered with this fact.
Quote from ulmer:
1. When we see volume reach DU at 11:00am, the price usually also rise 4-5% correspondingly. How should we handel this situation. For >5% prise rise or >10% prise rise, should we chase?
Spydertrader tells us he is very wary of gaps from the
open, and mostly avoids all
opening gaps beyond 5%. However prices will rise from the open as a result of increased volume, as shown in the Jokari window by Jack Hershey. For Stochastics to extend to the trigger point of 80, price improvement must take place. For me, I don't "chase" price. I simply execute based on the entry criteria specified many times by Spydertrader. Drawing channels has been shown to help in the decision making process, such that one can identify overhead resistance areas, and know whether price has travelled too far to provide a good entry point.
The pro-rata volume thresholds are LBDU by 10;30am, DU by 10.30am or FRV by EOD
Quote from ulmer:
Or should we only chase on those Bruno-R-Buy stocks? When we purchase after the price rising corresponding FRV, say 3%, should one exit at reduced gain rate, e.g. 20%-3% = 17%? The example is XING. I jumped in at FRV at 11:00am, but exit today with about 5% gain when I felt its weakness.
The two journals contain information on a number of setups. Bruno-R is not a replacement for the original methodology in journal I. I had the same misconception as you, before I fully read both journals. It is ideally meant for those traders who have correctly internalised the initial methodology. Bruno-R has the potential for increased returns, but with that comes higher risk (which is mitigated by the improved capabilities of the trader through the better understanding of Mr Hershey's methods)
Quote from ulmer:
2. When we see price reached FRV BEFORE 11:00am and meet other conditions, should we place market order right away, or should we wait till around 11:00 am? In other word, will the Wall Street push the price down a little bit before the enter? One example is ISE for today. As I "projected" it will reach DU volume at 11:00, I jumped in near the first peak.
Once the entry criteria has been met, entry takes place, irrespective of the time of day.
I use market orders, many people in this journal use both market and limit orders. There are advantages and disadvantages to both.
I hope I have explained things clearly for you. I cannot overestimate the importance in reading both of the journals. It will serve you far more than any short explanation to your learning gaps such as this.
