chiefraven,
There are still people here trading the basic method. I do. What I found is that everything is taken care of for you up until and possibly including the time of the purchase. After the purchase is where discretion comes into play. Personally I belive there is a lot of discretion at the time of the buy entry as well, only if you choose to get in earlier around market open vs waiting for the designated time.
What I have found so far is that there are definitely better entries on the daily watchlist stocks looking at the 5 min chart ONLY if the chart has a nice filled out appearance similar to a daily index chart. If you see a lot of close only bars and a lot of up and down chop bars that have little mini gaps I would not consider looking at the 5 min at all.
Also, after examining close to 330 charts, I've found that some follow the rules more than others. As a beginner focus on those. Of all the long list of stocks you are examining, have you really looked at the daily and the 30 min on all of them? Can you really say that every single one of them made sense to you? When I started paying attention to the ones that made sense, things took off in the right direction.
Over the weekend I spent several hours modeling a simple indicator that everyone knows using 5 min bar data on roughly 30 to 40 of our universe stocks. After roughly 8 hours of number crunching, when I took a look at the stats, some stocks had phenomenal charts. You couldn't ask for a better representation of buys and sells. I've decided not to waste any time on stocks that don't make sense. If my model can't make sense of it after 8 hours, how can I?
In conclusion, rank the DU stocks in order of the ones that make sense based on your current level of knowledge and understanding. Based on the entry criteria detailed in this journal, buy equal amounts of the 2 or 3 top ones on your list. End of story. Forget about the other ones.
Also, I have a different opinion on paper trading, but that is my personal opinion. There is a huge difference between the price you gave yourself when you paper traded and the price you'll get in the real world. When I was trying to get out of GIGM recently during the decline, there was a 10 cent difference between my first exit and my last exit on 1500 shares. Yeah, I know, someone was riding me down, but I didn't care, as it was I was lucky to exit with some of my profit intact.
There are still people here trading the basic method. I do. What I found is that everything is taken care of for you up until and possibly including the time of the purchase. After the purchase is where discretion comes into play. Personally I belive there is a lot of discretion at the time of the buy entry as well, only if you choose to get in earlier around market open vs waiting for the designated time.
What I have found so far is that there are definitely better entries on the daily watchlist stocks looking at the 5 min chart ONLY if the chart has a nice filled out appearance similar to a daily index chart. If you see a lot of close only bars and a lot of up and down chop bars that have little mini gaps I would not consider looking at the 5 min at all.
Also, after examining close to 330 charts, I've found that some follow the rules more than others. As a beginner focus on those. Of all the long list of stocks you are examining, have you really looked at the daily and the 30 min on all of them? Can you really say that every single one of them made sense to you? When I started paying attention to the ones that made sense, things took off in the right direction.
Over the weekend I spent several hours modeling a simple indicator that everyone knows using 5 min bar data on roughly 30 to 40 of our universe stocks. After roughly 8 hours of number crunching, when I took a look at the stats, some stocks had phenomenal charts. You couldn't ask for a better representation of buys and sells. I've decided not to waste any time on stocks that don't make sense. If my model can't make sense of it after 8 hours, how can I?
In conclusion, rank the DU stocks in order of the ones that make sense based on your current level of knowledge and understanding. Based on the entry criteria detailed in this journal, buy equal amounts of the 2 or 3 top ones on your list. End of story. Forget about the other ones.
Also, I have a different opinion on paper trading, but that is my personal opinion. There is a huge difference between the price you gave yourself when you paper traded and the price you'll get in the real world. When I was trying to get out of GIGM recently during the decline, there was a 10 cent difference between my first exit and my last exit on 1500 shares. Yeah, I know, someone was riding me down, but I didn't care, as it was I was lucky to exit with some of my profit intact.
wish i was using real money hehe