You'd think by now I would have learned to stop overriding the system....... but Noooooooo I still make the stupid mistake now and then. Congrats to those of you that made money today on this trade!
- Spydertrader
Spydertrader's Jack Hershey Equities Journal
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You'd think by now I would have learned to stop overriding the system....... but Noooooooo I still make the stupid mistake now and then. Congrats to those of you that made money today on this trade!
- Spydertrader
First, let me clarify. I failed to follow any rules when I exited the IIG trade. I allowed fear to influence my decision and shake me out of a good trade. Dumb! With respect to when one should exit, I have several rules, and each should be used depending on where we find ourselves in the price cycle.
1. First Day (Ross's Rule)
After entry - Exit when a 2% loss in equity price occurs (from entry price) or price heads into the negative (red) for the day (not since entry, but compared to previous day close). This is known as Ross's Rule.
At EOD - Exit if volume does not exceed FRV prior to the close.
2. Beyond First Day
Trailing stop - Exit anytime the 5% trailing stop is hit. If using an alternate stop strategy, exit when stops are triggered.
3. Peak Volume
Exit within the first 15 to 30 minutes on the morning after peak volume is reached.
4. Price Target
Consider an exit when price reaches the target price of 10%. This is more of a soft exit and requires an analysis of price location with respect to trendlines (Jack's and Nwbprop's Channels), how far the price has appreciated the entire run up (not just since entry), determining if the stock gapped up or not, and continued (or nonexistent) increases in volume.
5. Time
Exit after four days if no other exit criteria have been met. Jack Hershey uses a six to eight day time stop.
- Spydertrader
Correct. I monitor the price, rather than place an actual stop order with the broker. I use a mental stop and improve it in parallel with price appreciation.
When I first started trading, my broker did not have an automatic trailing stop order. It became a real pain in the backside to constantly cancel and replace my stops. As a result, I moved to mental stops, and now, I do the same out of habit.
- Spydertrader
Currently, my broker offers a stop that automatically trails the bid. In other words, you set the stop 1 point below the bid on a long trade, if the bid moves up 1 pt, your stop will automatically move up 1 pt with the bid. However, if the bid then moves down a half pt, the stop remains unchanged (and you remain in the trade). If at any point the bid decreases 1 pt from the highest bid, you get stopped out. No need to constantly cancel/replace.
The only disadvantage to utilizing my broker's automation that I can think of is that I can then become 'creative' with my exits. However, I tend to make mistakes when I become creative.
I have long felt that if I have the opportunity to set up an automatic trailing stop, that I should, as it would not allow me to break my own stop rules. Of course, I imagine not all brokers allow this.
At some point I would like to use Jack's stop offset method in tandem with an automated stop, but I am not quite that proficient yet.
2005-07-05, Wednesday - Update
Stocks Exceeding FRV levels by EOD
IIG MFLX
Stocks NOT Exceeding FRV levels by EOD
DCAI EZPW TASR
As a result, I continue to hold all shares of MFLX until at least tomorrow. I also continue to kick myself in the ass for selling my 2000 shares of IIG earlier today.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=785003>
Stocks Exceeding FRV levels by EOD
IIG MFLX
Stocks NOT Exceeding FRV levels by EOD
DCAI EZPW TASR
As a result, I continue to hold all shares of MFLX until at least tomorrow. I also continue to kick myself in the ass for selling my 2000 shares of IIG earlier today.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=785003>
2005-07-08, Friday - Lists
Hershey Wealth-Lab Chartscript Culling Methodology
Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort
Hot List
FORD IIG MCRI
Dry Up Stocks
DCAI FORD JMDT JUPM TASR
Hot List Stocks Scores
FORD - 1
IIG - 7
MCRI - 5
Dry Up Stocks Scores
DCAI - 1
FORD - 1
JMDT - 0
JUPM - 5
TASR - 0
Keep an Eye on These Stocks
TASR (Attached)
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=785189>
Hershey Wealth-Lab Chartscript Culling Methodology
Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort
Hot List
FORD IIG MCRI
Dry Up Stocks
DCAI FORD JMDT JUPM TASR
Hot List Stocks Scores
FORD - 1
IIG - 7
MCRI - 5
Dry Up Stocks Scores
DCAI - 1
FORD - 1
JMDT - 0
JUPM - 5
TASR - 0
Keep an Eye on These Stocks
TASR (Attached)
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=785189>
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