Spydertrader's Jack Hershey Equities Trading Journal III

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Susukino & Haroki,


I'm curious about what level/rules you're trading with. My understanding is that Journal I dealt with only stocks in DU.

I have traded with Journal I rules a couple of months over the summer (bad timing..), and been looking into channels and gaussians for a couple of months now. Besides confirming Journal I entries, I now see that by locating B2B and R2R formations, there are a lot more potential setups.

Have you looked into this as well?
 
Quote from Munck:
I'm curious about what level/rules you're trading with. My understanding is that Journal I dealt with only stocks in DU.
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That's exactly what I'm doing. VSR and BTJ were both on the DU list. TASR was not - I was messing around. The rules I'm supposed to be using are the simple ones outlined in Journal I.

Suss
 
Hello all,
I have been reading through Journals I and II for the past couple of weeks. I also have been doing some list culling and examining. Here's my basic process:

1) I download the EOD data and run it through nicepairs' cull_eod.xls file.
2) I then run that list (usually about 1000 symbols) through the Hershey Equities Rank v. 4.0.0. This usually gives me about 200 symbols left.
3) I run those symbols through the Hershey Equities Dry Up Volume Scan v. 2.0.0. This usually gives me 2-5 stocks. I put these in my final universe.

I have a feeling I am missing something in these steps. I was using the stocktables.com data, and wondering if I should go back to that simpler method (detailed at the end of Journal 1).

Anyway, I had ARGN and BTJ in DU today. I traded BTJ at about 10 this morning for $41.1899. It had already reached Lower Band DU. It is currently at 43.45. It looks like it is going to reach FRV by the end of today. I will hold it if that is the case, and then use Spidertraders qualifications for selling the stock detailed at the end of Journal I.

Anyway, just thought I would put in a post, and see what kind of advice I could get.

Jamey
 
Hello all,
I was hoping I could get a few details on the following exit rule. I am a new at reading charts and was hoping to get a few pointers. My primary confusion is in how to read trendlines and how to tell if a stock has "gapped up."



"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. "

Thanks!!

Jamey
 
Not to be harshly critical or anything, but if you don't what it means when a stock gaps up then you really shouldn't be trading yet. Find a book about trading and study it (and spydertrader's journals) BEFORE putting your money on the line. You'll save yourself a lot of money and heartache. I know this from personal experience.

Angie
 
Quote from angelina:

Not to be harshly critical or anything, but if you don't what it means when a stock gaps up then you really shouldn't be trading yet. Find a book about trading and study it (and spydertrader's journals) BEFORE putting your money on the line. You'll save yourself a lot of money and heartache. I know this from personal experience.

Angie
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Angie,
I guess I wasn't clear. I understand what it means when a stock gaps up, I was wondering how it fits into the the whole scheme of deciding when to sell, if one does not chose to sell at 10%.

Jamey

P.S. As I reread that post, I really was pretty poor at explaining myself. Sorry about that.
 
Ahh...my apologies.

I'm not entirely sure what the author was talking about but perhaps he meant that if the stock has already gapped up by 5%, and the total width of the channel is 10%, then you shouldn't expect to obtain a 10% profit because it has already covered 5% of the price movement.
 
Quote from angelina:

Ahh...my apologies.
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Nothing to apologize for. If I have learned anything in the past month of reading these journals and Reminiscences of a Stock Operator it is that I know VERY LITTLE. I am surprised that I did not lose all my money in the 6 months before that. I count myself lucky that I broke even.
In any case, I am continuing to work my way through these journals again and am reading The New Market Wizards. I hope that by the end of this year I will have a really good grasp on things.

Jamey
 
Quote from Munck:

Susukino & Haroki,


I'm curious about what level/rules you're trading with. My understanding is that Journal I dealt with only stocks in DU.

I have traded with Journal I rules a couple of months over the summer (bad timing..), and been looking into channels and gaussians for a couple of months now. Besides confirming Journal I entries, I now see that by locating B2B and R2R formations, there are a lot more potential setups.

Have you looked into this as well?
More...

Yes.

I've been following along somewhat haphazardly with the futures journal, and can see the advantages of using channels/gaussians in stocks also.

The beginning methods work VERY well, but fewer oppurtunities are available to you, IMO. Best to take Spyder's advice and start with that and build your knowledge/awareness of how volume/channels/gaussians and indicators interact before jumping into using channels only. There's plenty of time. The stock market is going nowhere.....
 
Quote from Susukino:

I remember reading something about AMEX stocks - why do you avoid them/reduce risk? I got stopped out of BTJ, which was annoying. Still in VSR for a small gain.

Suss
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LOL-

Yes, I bought BTJ yesterday at 40.15 and sold this morning when ES started down to save profit. Made about 2%. Of course, it is now up 10%. Ha ha.

Better to be conservative. There should be more coming.....
 
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