Spydertrader's Jack Hershey Equities Journal II
- Thread starter Spydertrader
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martys, I don't know if you survived that dip at 24.20 but if you're still in it might be not that bad. There was a volume spike during the dip indicating strong support, I am actually watching KNDL close for a buy at the close.Quote from martys:
Shit. Enter KNDL by mistake @ 24.54. Stochastics did not reach 80. Will try to trade out of it.
I had marked KNDL last night as the stock to watch today. I really liked the chart as it appeared to have bottomed yesterday morning followed by a slight volume and price increase in the afternoon. I followed KNDL closely all morning looking for an opportunity to enter, but the Level II data showed wide spreads and volume appeared very light. I kept looking for an entry, but each time I thought I found a place to enter, the bid / ask spread widened further on very few shares. As a result, I stood aside.
My comments above regarding needing an increase in volume for the (11:30 AM - 12:00 PM) price bar did end up materializing. You now had the price improvement required to exit the trade with a small profit. As I type, Level II shows 24.67 x 24.76 for KNDL. As a result, you need to ask yourself this question: What has changed since you entered the trade on an error? Simple because you have a small unrealized profit doesn't necessarily make the trade now a 'good trade.'
As I indicated you already experienced the 'floor being pulled from beneath your feet' with respect to price action on KNDL. As volume continues to remain relatively light for this equity, should you decide to hold, rather than exit (and bank your small gain), I recommend exercising caution. Although price continues to creep slowly higher, anything can (and often does) happen with respect to thinly traded equities.
- Spydertrader
Thanks SpyderTrader. I just try to exit @ 24.73 and I found out my previous cancelled order (exited at @ 24.73) was executed. I really hate my parent's account order platform which requires me to hit confirm button a thousand times.
Although the price did pop a bit, it's really not my trade and I will not look back.
I really appreciated all of you helping me out. Thank you all.
Although the price did pop a bit, it's really not my trade and I will not look back.
I really appreciated all of you helping me out. Thank you all.
You might continue to monitor KNDL throughout the afternoon. Volume has all but evaporated (only 700 shares traded during the last 10 minutes), yet price continues to hold. Price could begin to run again if volume picks up.
- Spydertrader
Hi Spydertrader,
Just to confirm... this is not a JH trade in your book. Correct?
I think I did good today with ES and satistified. This "two wrongs (orders) make a right" incidence makes me wonder about my trading. I am gonna stop trading today. Will only look at BOOM at the end of the day. Thanks again.
Good trading!
Yesterday, Richardson54 posted an excellent observation with his corollary to Hershey Trading. He observed how a stock begins to improve in both Volume and Price in the afternoon on the day before a breakout. Richardson54 pointed out this behavior with BOOM. We see a similar pattern in place with KNDL beginning around 11:00 AM Eastern Time yesterday (See Attached Chart). Jack Hershey often advises trading equities while exercising a low level of risk. In the previous Journal, I often recommended reducing risk as an overall method of any trading system. Your approach today appeared not to follow any sort of plan. In fact, you described the KNDL trade as a mistake. As a result, if you intended to enter into a long position with KNDL in anticipation of a volume and price breakout, then your $24.54 USD entry occurred much too late. If you planned to enter into a long position in anticipation of actual volume exceeding Low Band Dry Up Volume, then it appears you entered too early.
After price improved somewhat, you then appeared to reconsider your position. Once the trade turned profitable, you allowed your emotions to seek a rationale for staying in the trade. That which at first you considered a 'mistake,' now seemed to you to have transformed into a 'good trade.' Yet, you did not appear to follow any particular strategy with respect to entering or exiting. To me a good trade isn't necessarily a profitable one. My definition of a 'good trade' involves proper execution (both on entry and exit), as well as, solid adherence to my trading plan. I focus on proper trade fundamentals, discipline and money management. Over time, such a focus has brought me significant profits.
We all make mistakes (I have made quite a few public ones in The Original Journal). I continue to struggle to keep my emotions out of my trade decisions each day. It remains an ongoing battle. However, recognizing our mistakes and striving to eliminate a repeat of the same errors results in improved odds of success. Analyze your decisions for today, and attempt to learn how you could have either avoided the pitfalls entirely, or improved upon the result. I think you will find the activity helpful. I perform the same exercise each night.
I hope that helped.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=913214>
And there it goes.................
- Spydertrader
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