Spydertrader's Jack Hershey Equities Journal II

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Quote from foible:

What was it that let you know it was heading south, or do you reduce risk and exit if it doesn't let you know it's going your way?
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I used a limit order for this trade and received a fill just above the bid (at the time). I couldn't have received a better fill price without front running the signal. After my entry, price only moved slightly in my favor before heading south in a hurry - not the classic price pattern for a trend continuation. In addition, both MACD and Stochastics (5,2,3) showed convergence. After allowing sufficient time (in my opinion) to insure this wasn't a head fake Market Maker shake out, I exited with a market order in an effort to take a small loss and focus on other trades.

In short, the trade simply wasn't working as I anticiapted.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1203715>
 

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Quote from Spydertrader:

In short, the trade simply wasn't working as I anticiapted.
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Good stuff. I will adjust my rules to lighten shares then exit if the trend does not continue soon after entry.

Thanks for the insight.
 
Quote from qed:

Does anyone else take partial profits on these Jack Hershey trades? Is it a wise thing to do?
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Determining when to bank one's profits remains a matter of personal choice, risk assessment and individual trading style. While banking a portion of the profits early (and allowing the remaining shares to run) does provide some measure of assurance, doing so, also reduces one's overall gains. In Journal One, I often banked half the shares once reaching a 5% gain. I do so much less often now. As you learn to more accurately anticipate price improvement (See XING Example - above), it only makes sense to hold your winning trades longer (and therefore, maximize your gains) while 'offing' your losing trades as soon as possible.

However, for the beginning trader, experiencing positive cash flow provides far greater benefits compared to chasing after every penny in a trade. After you exit, you always have the opportunity to 'debrief' your trade in an effort to learn how might you have better managed it.

In other words, use your trades, not only as opportunity for profit, but also, as an environment for learning what works best for you.

Keep up the great work.

- Spydertrader
 
Quote from cipherscribe:

I'll be sure to be a little less concerned over the spread next time.
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I've made similar mistakes to this in the past. Concerned over pennies, I missed moves in the dollars. Trying to finesse my way into a trade often resulted in less than desirable outcomes. I don't do that anymore :D

- Spydertrader
 
OMNI Rocked Today !

I was fortunate and got in very early on low band dry up volume.

It just kept on going and going for most of the day.

OMNI closed at $8.25 for a nice daily gain of +$1.10.

Volume hit 2,616,446 shares at last check. Wayyyyyy past Peak Volume of 1,680,00.

Sold it at a nice profit.

I trust a number of my fellow Hershey Traders also benefited today from OMNI.

On the flip side, LMIA did not behave as expected . Indicators were not looking so attractive not long after purchase early on today.

Sold it at a small loss of $29.

I guess we have to be in it to win it. But we do not always win it!

LOL

Regards to all.
 
Quote from foible:

Did you buy any when it was trading down to 38.75?
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No, I missed the boat entirely.


Quote from foible:
I got a bit greedy and tried to frontrun LMIA but got stopped out for just over 2%
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Sorry for your loss. I'd be interested in your thoughts about the block trade that my system registered on LMIA at 9:30 AM for 15,700. That kept me out of LMIA today.
 
Quote from Spydertrader:

As previously discussed, XING did make it to the $12.75 USD price point. As a result, XING clicked off another 20% gain in 8 days.

- Spydertrader
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It appears that my exit on XING at $12.10 may have been too hasty, trying to lock in profits, rather than letting the opportunity run. My exit on XING was based around the protection of profits, rather than adherence to any existing rules around channels and resistance.
 
Spyder,

Could you confirm the followings?

ISE and JOBS meet Hershey trading rules on Friday.
EZPW meet Hershey trading rules today.
No other stocks meet Hershey trading rules at the end of the last two trading days.

I realized I didn't draw the right channel on XING on last Friday. Congratuation on your trading on XING. BTW, you have sold XING today, isn't it? I just want to have some benchmarks to test my understanding of the trading system. Thanks.
 
Both ISE and JOBS hit the top of their respective channels on Friday. ISE reached and exceeded Peak Volume levels by End of Day while JOBS came extremely close. Since both equities reached the tops of their respective price channels combined with volume reaching Peak levels, selling either on Friday, or within the first 30 minutes of today's open, appeared to be good choices.

EZPW today moved some 6% (or so) with respect to the previous day close. Depending on entry, one might have wished to close out the day flat and bank the excellent move. On the other hand, holding in an attempt to capture a larger portion of the overall move could require a longer than normal hold time. Based on the most recent low, price would need to hit the $43.80 USD price point in order to click off another 20% gain. This price point falls outside the the current price trend. As such, one may wish to move their money into a higher money velocity equity if price fails to breach the upper trendline.

Depending on one's data source, OMNI provided a nice signal today, as well as, nice profits. Volume for OMNI exceeded Peak Volume levels, and as such, some traders prefer to exit immediately when this happens - preferring not to be greedy by exiting the next morning.

With respect to the XING Channel lines, don't worry about it. As I have said before. Use each trade, not only as an opportunity for profits, but also, as an opportunity to learn. Debrief every trade in an effort to determine if and where improvement can be made.

I currently hold no positions at this time and enter tomorrow 100% in cash.

Good Trading to you all.

- Spydertrader
 
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