Started the Trades

Quote from Zr1Trader:

SB hold anything overnight and your just asking for it... You should know this. A gap is a gap and no stop will save you from that. You do this a while and you will see things that you never thought you would see and those times will blow you out.


You keep talking about breathing room. Just set the stop and target and forget about it. Exit at Market close if nothing gets hit or trail the stop up and let the market take you out.. That way your emotions can't control you and you'll learn the process. Screw the money. Focus on the process of risk management.

"your stop is .5 to 1% of equity.

want it wider..........?
chop you position in half and double the stop distance away.

wider still.......?
chop position size again and place it 4 times the distance away.
"

I'm done advising. GL and may the sharks not eat you alive with your food and board money.
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Zr1Trader,
I appreciate your advice here. My stops are .5 to 1% of my equity as I've mentioned. I don't hold overnight. I've done it before and learned the hard way. My biggest loss have come from holding overnight. The last time I did it was last week was that I had a hunch based on the 1 hr chart. That is something I do not intend or plan on doing in the future. Like I said, this is a work in progress. Things that I've done couple months is not the same thing that I would do now. I used to get the keys mixed up when I know that I had to move fast. Pressing the wrong button for a buy instead of a sell or vice versa. I've worked on that and hadn't had that happen in a while. Cross my fingers. Thanks
 
Quote from sfbayarea:

I recall halts being done but not until it was well into a trend like some down move. The news hits the charts first. Nothing is impossible. So since SPY is not one stock of a company and being an ETF of many, there won't be an intraday halt? If I went to trade the SPY instead of GS, I would be safe from such an event? Do you have or anyone have a chart of what happens on a day where there is such an event?

I know that I do 200 shares most of the time. Ideally I would like to do 150 but they don't allow for odd numbers unless it was a partial fill. I know that I like to get out of the market a lot so I don't have too much emotion for too long. If I go with 100 shares, I know that I will have to be in the market longer. That is something that makes my emotions tougher to handle. It's probably the right thing but my emotions have trouble with it. Emotional control is something I still struggle with.
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Forget about your false sense of security on what a chart pattern would look like under such an occurence...it's a moot point. By definition- a black swan is not only an outlier event, but one that is presumed would never happen. Simply thinking that a previous chart gave one a set of clues to get out ahead of the collapse as a basis for ignoring a black swan possibility is reckless.

What I am saying is your risk is far less in an index etf such as SPY vs a single stock such as GS. Of course a halt could occur in SPY... however u would never experience the % drawdown in an index vs the impact a material event tied to a stock could have.

Sb-- u simply CANNOT continue with your pattern of exiting a position with mere pennies...while having no problem holding for much longer periods & bigger $ amounts in your losing trades. You will fail. Correction-- you ARE failing. You will not generate the "breathing room" you are looking for this way...the math & probabilities involved here are against you and do not add up...they simply don't and your stubborness in refusing to change is only going to work against you and accelerate the inevitable.

Your whole thought process is wrong. 100 shares is exactly the first step u should take if a round lot is your only choice--- your capital exoosure is much lower-- a great thing! Your risk amount at your stop location is lower... a great thing! Your profit potential-- it will be much higher due to the comfort zone you should have from the first two benefits mentioned which should allow you to stay in the position for the bigger move.
 
When a trader begins the process of learning to differentiate that which they believe exists from that which " actually does exist " while operating under the ‘correct’ mental state, then this augments the learning process.

‘learning to learn’ begins with observing the market (in a scientific sense) in order to see that which exists, rather than, in an effort to prove or disprove pre-conceived notions.

until this occurs, you will be yet another blown out casualty on the trading road with the needle hanging from your arm.

cheers,

s



:cool:
 
+4

One bad trade. I was up early so I was being more aggressive. I gotta run now. No trading for the rest of the day as I have to attend a gig. Will post the chart of it later as well as one of a scalp that saved me.

Bought 118.10 10:11
Sold 117.595 10:15

It did turn out to be -100 trade. It hit my stop and the gap was wide. I keep doing the same thing, next time no entries with large signal bars. Large signal bar means large pullback.

Scalps
Sold Short 117.86 Sold Short 117.20 Sold Short 117.24
Bought Cover 117.82 Bought Cover 117.17 Bought Cover 117.07
Sold Short 117.25 Sold Short 117.65 Sold Short 117.85
Bought Cover 117.18 Bought Cover 117.38 Bought Cover 117.81
Sold Short 117.5322 Sold Short 118.446
Bought Cover 117.51 Bought Cover 118.42
 
Quote from sfbayarea:

+4

One bad trade. I was up early so I was being more aggressive. I gotta run now. No trading for the rest of the day as I have to attend a gig. Will post the chart of it later as well as one of a scalp that saved me.

Bought 118.10 10:11
Sold 117.595 10:15

It did turn out to be -100 trade. It hit my stop and the gap was wide. I keep doing the same thing, next time no entries with large signal bars. Large signal bar means large pullback.

Scalps
Sold Short 117.86 Sold Short 117.20 Sold Short 117.24
Bought Cover 117.82 Bought Cover 117.17 Bought Cover 117.07
Sold Short 117.25 Sold Short 117.65 Sold Short 117.85
Bought Cover 117.18 Bought Cover 117.38 Bought Cover 117.81
Sold Short 117.5322 Sold Short 118.446
Bought Cover 117.51 Bought Cover 118.42
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Why r u trading GS??? Did u even have a clue GS reported earnings this morning? Any clue the conference call tool place during trading hours this morning?

Many of your scalps are not even covering commissions! $ .03??? .04??? So your trade goes negative...and u just sit there & ride it down .50.... but u close a trade on .03 profit!! I know i know...u were probably up more & then it pulled back blah blah blah...u r goin about this all wrong!!!
 
Quote from Riffraffpatrol:

Why r u trading GS??? Did u even have a clue GS reported earnings this morning? Any clue the conference call tool place during trading hours this morning?

Many of your scalps are not even covering commissions! $ .03??? .04??? So your trade goes negative...and u just sit there & ride it down .50.... but u close a trade on .03 profit!! I know i know...u were probably up more & then it pulled back blah blah blah...u r goin about this all wrong!!!
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I have to disagree with you here about this. Information always shows up on charts first. News means nothing. News shows up on charts first as long as you're not holding over night. Charts first.. News later. You make trading sound so easy. It's not. Just sounds like you use completely different set of tools to trade than me. That's why I asked you. You don't say but that's fine. Everyone has their own methods. However again, news hits charts first. Trade according to the chart. That's my focus in case you haven't noticed. Again, I don't post positive trade info so you don't know what's going on with the stock at the time. I just don't like how you make it sound easy by setting your stop and let it run. It's not. Many times, it's not that clear if there's no clear trend just trading range. You're trying to illustrate the black swan but again can you provide a chart of this happening to a stock like GS? I'm really asking nicely here. Who cares if there's a bad event.. trade it in that direction. If the 1987 crash happened, trade it short. I think you've missed reading some of my entries. For a long time, I was forced to trade counter trend because of the broker trading system setup. Now that they allow it, it's been better. Now that I'm trying to go with the current trend, there's still new lessons to be learned.

ALL OF MY SCALPS cover commissions!! The totals given is NOT P&L, it's after commissions/fees estimates. Please, don't make false assumptions without looking into details. I've mentioned that on a prior post. I appreciate your effort to help but making assumptions like that do the opposite. I'm really questioning everything you're saying and your agenda after saying I'm taking losses on scalps. If I'm taking losses after scalps, why do you think I would continue to take them? If I took a loss on a scalp, I would note it with an asterisk. I don't know who your broker is but just not understanding about my broker commissions and saying that I'm taking losses on scalps is highly questionable. You probably don't do this because your broker charges $4-7 per trade.
 
Here is the -100 loss trade of the day. I didn't use the signal bar as a support stop. It came real close. At -100, I took the loss as I didn't want it to go any further. The lesson here is to not use a large signal bar to get in on a trade. The support held. As the pullback can go a long ways as exemplified here.
 

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I made this as an exception for scalping. I don't post positive results often as being important. This shows where scalps can help. Scalping out is not my goal. Bad trades are generally shown here as negative reinforcement for learning.

Here is a scalp that saved me. Had I not scalped out, the stop loss would've be set at one tick above 117.70 as the highest resistance there. It could've been a -40 loss. Everything looked like it's moving down since 11:00 with the green bars showing little strength with possibility of channeling down. Yet it reversed. One of the few positive trades to make a chart of and post. LOL
 

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Quote from sfbayarea:

Here is the -100 loss trade of the day. I didn't use the signal bar as a support stop. It came real close. At -100, I took the loss as I didn't want it to go any further. The lesson here is to not use a large signal bar to get in on a trade. The support held. As the pullback can go a long ways as exemplified here.
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Scalping stocks are much tougher to do than in futures IMO, but if you are going to I rather look for climatic bars, buying near the lows of that huge range bar and selling near the highs of that huge range bar, and risking few cents to make a buck, take off half at a reasonable amount and let profits run.

Often times the bias out of the Climatic bar is opposite, and trading within often times is very choppy.
 

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Quote from sfbayarea:

I have to disagree with you here about this. Information always shows up on charts first. News means nothing. News shows up on charts first as long as you're not holding over night. Charts first.. News later. You make trading sound so easy. It's not. Just sounds like you use completely different set of tools to trade than me. That's why I asked you. You don't say but that's fine. Everyone has their own methods. However again, news hits charts first. Trade according to the chart. That's my focus in case you haven't noticed. Again, I don't post positive trade info so you don't know what's going on with the stock at the time. I just don't like how you make it sound easy by setting your stop and let it run. It's not. Many times, it's not that clear if there's no clear trend just trading range. You're trying to illustrate the black swan but again can you provide a chart of this happening to a stock like GS? I'm really asking nicely here. Who cares if there's a bad event.. trade it in that direction. If the 1987 crash happened, trade it short. I think you've missed reading some of my entries. For a long time, I was forced to trade counter trend because of the broker trading system setup. Now that they allow it, it's been better. Now that I'm trying to go with the current trend, there's still new lessons to be learned.

ALL OF MY SCALPS cover commissions!! The totals given is NOT P&L, it's after commissions/fees estimates. Please, don't make false assumptions without looking into details. I've mentioned that on a prior post. I appreciate your effort to help but making assumptions like that do the opposite. I'm really questioning everything you're saying and your agenda after saying I'm taking losses on scalps. If I'm taking losses after scalps, why do you think I would continue to take them? If I took a loss on a scalp, I would note it with an asterisk. I don't know who your broker is but just not understanding about my broker commissions and saying that I'm taking losses on scalps is highly questionable. You probably don't do this because your broker charges $4-7 per trade.
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Your responses are so naive and erroneous in so many ways...spoken like a true greenhorn. I don't even know where to begin... you have oh so much to learn SB.

After looking at the last 2 charts you posted-- it is becoming obvious you truly don't know what you are doing. You are buying in the middle of nowhere on the chart, and selling where there is no supply whatsoever. I want someone like you on the other side of my trades... every time!

As for the commission issue-- I have no idea what my broker charges for stocks... I am a full time options only trader. I have seen you post trades where you came out with $ .01 - .02. On 200 shares you make $ 2.00 - $ 3.00 gross... what is your commish rate?
 
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