anyone subscribe to thestreet.com swing trader newsletter? I was thinking about doing it but was wondering how other ppl felt about it
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Stock Swing Traders
- Thread starter coolweb
- Start date
Quote from coolweb:
Where would you suggest I place my stops for JPM?
Cool;
Re your JPM trade.
I agree that the stops are too tight for a swing trade. If youâre looking for a 5% or better move why have your stops at pennies? A 1% stop would be 40 cents for JPM.
Any reason you entered the trade when you did? To me the entry would have been in the 40.25 area when it broke resistance and my stop would have been the days low. Of course I have the advantage of looking at the chart at the end of the day and didnât have to make any decisions in real time.
I trade with IB and find it difficult to get quick fills on NYSE stocks so I use stop sell orders to exit with my stop loss and expect to lose a little with slippage.
JPM has an ATR of .5-.6, and its nearest support is about 39.5, or about 2*ATR bellow your breakout level.
You declared yourself a swing trader, and entered JPM on a price breakout with large volume.
In my opinion, this was not a good entry point for a swing trade because it required a too large stop loss for your probable reward. At the same time a wider stop loss should be ok for a trend following trade.
JPM's long term (weekly) is up, but in my opinion the whole picture suggests a retracement in short term, and today might've been just a buying climax, hence risky for a swing trade.
You declared yourself a swing trader, and entered JPM on a price breakout with large volume.
In my opinion, this was not a good entry point for a swing trade because it required a too large stop loss for your probable reward. At the same time a wider stop loss should be ok for a trend following trade.
JPM's long term (weekly) is up, but in my opinion the whole picture suggests a retracement in short term, and today might've been just a buying climax, hence risky for a swing trade.
Quote from coolweb:
Where would you suggest I place my stops for JPM?