Spydertrader's Jack Hershey Equities Trading Journal III

Status
Not open for further replies.
Spyder i have a few questions about the IAAC trade that I'm hoping u can help me out with.

If we entered seven days ago would we not have exited on the 19th when the tape on the daily was broken on decreasing price with increasing volume. And then look for a new entry on either the 20th or 21th.

What alerts you in advance to start looking for an exit using the 30min tape being broken. The reason i ask is because the intraday taping channels are broken many times simply just because of the sideways movement around lunchtime, so when should I being using this channel break for exits.

I am very interested in when to use the 30min taping channel exit, as in this case it would have saved a trader nearly 4%. This is a problem for me as i tend to experience a stock running up 4-5% in a single day but then come right back down. Any early warning signs for me to watch for would be a great help.
TIA
 
Quote from TimDog:

If we entered seven days ago would we not have exited on the 19th when the tape on the daily was broken on decreasing price with increasing volume. And then look for a new entry on either the 20th or 21th.
More...

If one attempts to go from Point One (FTT) to a Point Two (of a Point Three Formation) then one could either:

1. Exit on the break of the tape and wait to re-enter on Point Three.

2. Reverse at the FTT of the 'tape' and short the stock down to Point Three.

3. Hold through the retrace down to Point Three.

Quote from TimDog:

What alerts you in advance to start looking for an exit using the 30min tape being broken. The reason i ask is because the intraday taping channels are broken many times simply just because of the sideways movement around lunchtime, so when should I being using this channel break for exits.
More...

When I believe Price has moved far enough, then I move to the 30 minute time frame to look for the best exit. An example of Price moving far enough might be:

1. Price bounces off a 20 SMA on a daily chart.

2. Price has moved 20% from its last low (The FTT)

3. Price forms an FTT

4. I have held the trade for 6 - 8 days and now I have to decide if I want to hold through a weekend :D

5. Anytime one feels they have made 'enough' money.

Quote from TimDog:

I am very interested in when to use the 30min taping channel exit, as in this case it would have saved a trader nearly 4%. This is a problem for me as i tend to experience a stock running up 4-5% in a single day but then come right back down. Any early warning signs for me to watch for would be a great help.
TIA
More...

Remember, I only went down to check out the 30 minute time frame after I had made the decision to look for an exit. The thirty minute simply gave me a trigger to leave the trade (or remain in the trade) based on the movement of Price.

Too often in Journal One I made decisions off the 30 minute chart at the incorrect time - meaning a followed the 30 minute when I should have monitored the daily. Monitor and perform nightly analysis on the daily, but enter and exit on 30 thirty minute fractal (or another fractal if you prefer).

I hope you found the above information useful.

- Spydertrader
 
That IAAC trade really helped me clarify some things. Thanks for posting those daily charts. And please don't hestitate to do so again.

If I could add a little something about IAAC's price exit, here is a thought I have introduced before. If you look at my chart you will notice that I have the 20, 50, and 200 day averages plotted. Once a stock has ducted below the 200 for awhile, it may have a tendancy to meet resistance when coming up to it again. So, given your gains and the expected resistance, it made perfect sense to get out. The neat thing is that you had "seen" the resistance, without the line plotted.
 

Attachments

I have a different sort of question. Listening to Jack talk in Tucson, I notice that his beliefs about the market are very different then the common paradigm. It is refreshing.

Some of the interesting dominant beliefs I have heard Jack state are paraphrased below (Jack, correct me if I am incorrect.) These are the ones that stuck with me.

The market is a known quantity.

The market is like a vast ocean of money and all you need to do is turn on the faucet.

I would love to hear what Sypdertrader's dominant beliefs are about the market.
 
Quote from OpenTrader:

I would love to hear what Spydertrader's dominant beliefs are about the market.
More...

I have but one.

FTT's work in any Market; on any time frame - provided sufficient liquidity exists.

Good Trading to you.

- Spydertrader
 
Status
Not open for further replies.
Back
Top