Spydertrader's Jack Hershey Equities Trading Journal III

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Quote from johnpinochet:



If I could only buy 1000 shares of one, I would buy:
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Today it was LQDT, in @ $19.90, out @ $20.80. Thanks to Spyder for the extra push on this one BTW!!

I haven't done a review yet today, but based on what I saw this afternoon, on Tuesday it may be GIGM.

FTT of the ST down channel with a poke above the RTL of same channel this afternoon @ close.

I will be looking for just about any decent volume at all and price improvement.
 

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mischief,

Thanks for your observations. I know you have done a lot of data mining of the data for this method, so I'll have to concede that maybe it isn't such a great idea. Perhaps it is more of an occasional observation or a private message type thing?

OK, well, set that one aside then. I still think the issue of "If I could only buy 1 (or 2) and buy 1000 shares of that stock, I would buy this one." I think that is valuable, as it helps reinforce that a certain stock is firing on all cylinders in terms of the stock chart time frames, price action, volume action, fundamental issues, etc.

JohnP
 
This may turn out to be a submarine instead of a rocket:D I'll be ready for either.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1363932">
 

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Quote from johnpinochet:

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My question is, do you sock money away in long term holds in a separate account? I'd like to start funneling money into some some of the universe stocks but I really can't decide...
Thanks in advance!

JohnP
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ask yourself what will be the estimate return on the long term hold account?
 
Quote from nkhoi:

ask yourself what will be the estimate return on the long term hold account?
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Can this question be answered? I think you are saying that the return won't be near what I can get via this method, correct? I can't argue with that, by the same token, I would have been more than happy if a certain amount of my funds were in GROW back in August/September/October of last year and I had left it alone through part of January/February of this year.

I should rephrase the above on GROW to leave out February, and exit the first week of January! :)
 
Quote from johnpinochet:



I should rephrase the above on GROW to leave out February, and exit the first week of January! :)
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And that last statement is the whole point!

One task may be to go back and try to work out how much of GROW's rise would you have captured using the methodology. I am sure you would've been in and out of the stock several times.
 
If you are wondering why I brought up the long term question, it was prompted by checking my 401K (retirement account) with which I am trading the Hershey method, albeit modified for longer holds.

Even with the star that became a dog, ANGN, and the other misfires, I'm up more on my tax free retirement account than my day trading account.

With the retirement account, I roughly buy and sell twice a month.

My method for picking the selections for the retirement account has nothing to do with the short term technique I mentioned. It is all found in Spydertrader's post about stocks that are about to pop looking at the chart resulting from the Wealthlab script and the MACD. To be honest, if I had to throw out everything I've studied so far and only go with one or two things, it would be the summary of Journal 1, and the "MACD/stocks about to pop" post found somewhere here in Journal 2.

If you were to couple the above conclusion with money management and an exit strategy, then I think you would have a formidable method that is simply a slight variation of the Hershey method. The beauty of it is that other than the hour or so of effort for the day of the trade, my time involvement in maintenance is minimal, close to 0 minutes a day. This blows away the daily hour of study plus the 3 hours or so of watching the market that I'm doing now day trading and swing trading the Hershey method.
 
Quote from mischief:

And that last statement is the whole point!

One task may be to go back and try to work out how much of GROW's rise would you have captured using the methodology. I am sure you would've been in and out of the stock several times.
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Good point. I'm still working on automating things. Perhaps once I get to that point and no longer have to watch for 3 to 4 hours a day, then the drawback of daytrading/swing trading would be eliminated.
 
Quote from mischief:

And that last statement is the whole point!

One task may be to go back and try to work out how much of GROW's rise would you have captured using the methodology. I am sure you would've been in and out of the stock several times.
More...

With GROW, buy and selling at the right time would have made you 20%, which is our profit target, in less than a week.

To find the profit margin of the channel, find the percentage difference of the RTL and LTL. That is a good gauge of how much you stand to make under these methods. On most occassions it should be 20% because we are looking for stocks that cycle 20% in 6months. Hope that helps.

- Monk
 
I'd like to thank everyone who replied re: the long term issue.

I've given the matter more thought and one of the things I must make clear is that part of the reason my retirement account performance is greater than my day trading performance is that I loaded up on HWCC, BITS and XING and had lesser amounts on the other stocks I've traded.

The reason for loading up on the above three has to do with some of my previous posts, especially HWCC and XING. Actually, let me clarify, I picked the three as well as all of my selections in the retirement account as I posted previously a little while ago. I loaded up on the above three per my postings about patterns etc.

I didn't think it was an issue as theoretically I could have loaded up on the dogs as well, but it goes a long way towards explaining the discrepancy.

FWIW, the long term issue has been resolved for me. The method as detailed here and as elaborated on by Spydertrader, mischief, monkman, and rick is how I'll butter my bread.
 
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