As a sanity check that I'm doing things right, HANS hit the volume low band before 10:30 so that's a buy, right? Plus stoch and MACD looked good.
Spydertrader's Jack Hershey Equities Journal II
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Correct. Actual volume for HANS exceeded calculated Low Band Dry Up Volume just before 10:30 AM Eastern Time. Price at time of signal generation held at $93.75 USD. MACD Histogram was positive and The Stochastic Indicator (14,1,3) remained over 90. HANS has shown a $3.00 USD per share price improvement since time of signal generation. Volume continues to increase at this time as well.
- Spydertrader
Now, as far as money management is concerned, do you as a rule sell 1/2 when a position reaches 5% and move the stop to BE, letting the remainder run to 10% (or peak volume)? Or is this done on a discretionary basis?
I noticed that you did this scaling out in past postings, but I wanted to see if this is standard operating procedure or not.
I noticed that you did this scaling out in past postings, but I wanted to see if this is standard operating procedure or not.
I don't have a hard and fast rule for exits. Sometimes I have held the entire position to 10%, and sometimes beyond. Occasionally, I have sold half at 5% allowing the other half to run. Which action I ultimately choose depends on my previous experience with the equity. If I have profitably traded the equity previously, I would be more likely to hold all the shares. If I have no experience with the stock, I might manage the trade more conservatively selling part of the position to bank profits. A few times, I simply sold all my shares because the equity gave me a dollar per share profit within a few hours of purchase. As a result, I would say my exits contain more art than science.
Additional circumstances may also result in my decision to sell early or hold longer with respect to a trade. For example, if I purchased an equity a few days before earnings, I would not normally hold through the earnings announcement. Also, if I notice price blast through the upper channel only to fall back and close inside the channel boundary, I might sell the entire position. For me, experience dictates how closely I adhere to my exit rules. To answer your question, banking a portion of your profits while allowing the remaining shares to run as far as possible should be standard operating procedure. However, so many exceptions exist where standard operating procedure doesn't provide the best scenario, I have not made it a hard and fast rule.
Hope that helped.
- Spydertrader
For what it's worth I've been experimenting with different exit stratagies.
For intraday I have found that an setting a band just below (about .005 below) the 60 period moving average on a 5 minute chart works well. Started w/ the 60 period moving average but decided it needed a little wiggle room. I've had trades in PETS and TALX the last week and it has kept me in the trades (just barely) a few times.
I'm still trying to determine a good way to exit end of day or not. I had PETS last week and despite no FRV I stayed in the trade and made more money; selling when it was near its multi-day high.
On the other hand I had a nice run up on TALX the last few days (before today) stayed in there overnight and came out a bit lower this morning before I got stopped out.
I'm happy so far w/ the intraday strategy but still trying to work out best exit at end of day.
Mike
For intraday I have found that an setting a band just below (about .005 below) the 60 period moving average on a 5 minute chart works well. Started w/ the 60 period moving average but decided it needed a little wiggle room. I've had trades in PETS and TALX the last week and it has kept me in the trades (just barely) a few times.
I'm still trying to determine a good way to exit end of day or not. I had PETS last week and despite no FRV I stayed in the trade and made more money; selling when it was near its multi-day high.
On the other hand I had a nice run up on TALX the last few days (before today) stayed in there overnight and came out a bit lower this morning before I got stopped out.
I'm happy so far w/ the intraday strategy but still trying to work out best exit at end of day.
Mike
Is the stochastics 14,1,3 mentioned above being seen on your current daily chart or your view of the 30 minute chart?? Same question goes for MACD-H.
After reading the the link to the Bruno newsgroup reply I'm a bit confused with it's words and the layout of investing here. Any help would be appreciated.
The confirming indicators mentioned in my previous post (Stoch (14,1,3) and Positive MACD Histogram) refer to monitoring on a 30 minute chart.
The 'Bruno R' post refers to an alternative method for creating a daily Watch List of stocks. Creating a Universe of Stocks by beginning the culling process using a list of High Quality Equities remains the same as any other Hershey Strategy. Using a Daily Chart, Jack simply pointed out in the 'Bruno R' post a method where one might 'see' opportunities to anticipate a price reversal to the upside. By Example, I have attached a snippet of a Daily Chart of PWEI. The red and blue lines in the snippet are from a Stochastic (5,3,3) as of Wednesday evening (Eastern time). Notice the crossing and divergence of the two lines around the 20 level. Now, take a look at price action today for PWEI. Compare Stochastics (5,3,3) for PWEI attached here with what you have for Today (EOD) on a Daily Chart. I haven't updated my data yet, but you should see continuing upward divergence with the blue line on top of the red. The attached snippet simply provides a visual representation of one part of the puzzle described in the 'Bruno R' post. Monitoring Volume, Channels, Score and Cycles in conjunction with Stochastics (5,3,3) should provide a trader with clear entry and exit criteria. This was all Jack was trying to say.
I hope the above provided you some clarity.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=990710>
Thanks Spydertrader! Your help and work in this and the first journal is very much appreciated here for my trading efforts.
Looks like BOOM finally made it to the final universe list...
Also, thanks to spydertrader. This forum is the most civil, productive one I've seen.
Also, thanks to spydertrader. This forum is the most civil, productive one I've seen.
Actually, BOOM has had a place on the Final Universe for quite awhile now. Boom only recently (within the last three weeks) lost its rank. Fortunately, BOOM has now reacquired its rank, and therefore, won't find itself eliminated from the Final Universe at the end of the month.
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