Spydertrader's Jack Hershey Equities Trading Journal III

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Now that we have passed EOD, it's time for me to look at my "performance" today. As mentioned in my post just above this one, I sold ICOC at 11:30@9,71 due to not reaching average volume. After my exit, it went up nice and easy for the rest of the day for a total of +14%. I can't help wondering if I made a mistake with this one??
(I'm using the beginners methods looking at starting using channels and gaussians.)

If anyone has a analysed chart of ICOC I'm very interested in taking a peek :)

I have been rather frustrated (lots of false signals) with the beginners methods the last month, and I'm beginning to see the limits/market movements leading to the more advanced methods.
 
Quote from Munck:

Now that we have passed EOD, it's time for me to look at my "performance" today. As mentioned in my post just above this one, I sold ICOC at 11:30@9,71 due to not reaching average volume. After my exit, it went up nice and easy for the rest of the day for a total of +14%. I can't help wondering if I made a mistake with this one??
(I'm using the beginners methods looking at starting using channels and gaussians.)

If anyone has a analysed chart of ICOC I'm very interested in taking a peek :)

I have been rather frustrated (lots of false signals) with the beginners methods the last month, and I'm beginning to see the limits/market movements leading to the more advanced methods.
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for myself, i have found that it is important to not jump the gun and enter to early.

the hardest part about this method for me, was the patience needed.

DU is just one necessary part. DU alone doesn't mean must buy to me.

i wait for prorated FRV (65day avg vol * 0.22) to be hit by 11 to 11:30. after 11:30, i'll still watch the stock, and if a volume burst comes into it that takes the volume past the prorated FRV for that time period, i will look again.

hope something here is helpful. constructive criticisms welcome.
 
Quote from appletoast:

i wait for prorated FRV (65day avg vol * 0.22) to be hit by 11 to 11:30. after 11:30, i'll still watch the stock, and if a volume burst comes into it that takes the volume past the prorated FRV for that time period, i will look again.
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Just out of curiousity, how much is the stock usually up when you get in? For the beginner method I use the 10:30 LBDU deadline. I usually jump the gun and buy when it looks like LBDU will be hit in the next 5 or so minutes (assuming I like the looks of everything else). Most of the time the stock will be up around 2-3% at that point. Almost all of my better trades have had volume continue to pour in over the next hour while the stock gains another 5% or so. It seems that of my better trades, you will have missed a pretty good portion of the move by waiting. Of course, you also miss out on most of the buy signals that falter.
 
Quote from nicepair111:

Just out of curiousity, how much is the stock usually up when you get in? For the beginner method I use the 10:30 LBDU deadline. I usually jump the gun and buy when it looks like LBDU will be hit in the next 5 or so minutes (assuming I like the looks of everything else). Most of the time the stock will be up around 2-3% at that point. Almost all of my better trades have had volume continue to pour in over the next hour while the stock gains another 5% or so. It seems that of my better trades, you will have missed a pretty good portion of the move by waiting. Of course, you also miss out on most of the buy signals that falter.
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Keep in mind that if DU was hit the day before, LBDU is such a small number that on stocks that trade volume in the lower level of the required volume (200k shares), a few "errant" trades will cause the LBDU to be hit.

if those were "random" trades, and not just the beginning of a larger position being initiated, FRV will have trouble being hit.

by the time FRV is hit at 11am or so, the stock is generally up 3 to 6%. that 3 to 6% i can't capture. but i also tend to be wrong less.

my advice, fwiw, don't worry about that first 3 to 6%. i think that without that 3 to 6%, the rest of the buying may not come in.

i think it's been said here before that LBDU will allow you to capture more of the move when it happens. but you will also participate in a lot of trades that never make it to FRV.
 
Quote from Spydertrader:

Final Universe Additions

AVCI
CALM (a previous Final Universe Member who has returned)

- Spydertrader
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Thanks for the CALM entry. Reviewed the chart and it looked good so bought $12.50 calls at $4.50 lwhen stock was just below $16 looking for move back higher. Now trading at $6.65 for 45% gain with stock at 19.24.

:D
 
Quote from optioncoach:

Thanks for the CALM entry. Reviewed the chart and it looked good so bought $12.50 calls at $4.50 lwhen stock was just below $16 looking for move back higher. Now trading at $6.65 for 45% gain with stock at 19.24.
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Nicely done.

Good to see people making some money on these things.

- Spydertrader
 
I think this may have been asked before but i couldnt find the answer when doing a search.

When one trades past the beginner level of equities, do we still need FRV and peaking volume or are we looking more at Trend Lines and ftt....etc for entries.

For instance, I have BIDU lining up at a RTL for a possible right to left traverse but yesterday was not in DU. I am just watching this trade but was curious as to if i am "inventing" which i happen to have done in the past. I am trying to be aware when i invent stuff and eliminate it asap.

thanks.

jc
 
Quote from tradingbug:

I think this may have been asked before but i couldnt find the answer when doing a search.

When one trades past the beginner level of equities, do we still need FRV and peaking volume or are we looking more at Trend Lines and ftt....etc for entries.

For instance, I have BIDU lining up at a RTL for a possible right to left traverse but yesterday was not in DU. I am just watching this trade but was curious as to if i am "inventing" which i happen to have done in the past. I am trying to be aware when i invent stuff and eliminate it asap.

thanks.

jc
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DU is just a very clever way of finding a stock in between volume guassians.

each impulse is followed by a retracement. volume increases during the the impulse; volume decreases during the retracement. DU is what happens right after a retraceement and right before the next impulse.

it is important to trade in the direction of the next impulse, which is why you need to see price improving on FRV after DU for a long trade.

hope this is helpful.
 
Good call PointOne! Today's close $19.01 ...
Quote from PointOne:

What do you guys think of this MTOX chart?

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1564350>
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