Stock Swing Traders
- Thread starter coolweb
- Start date
Hello,
Short
LEN
KBH 's
All looking quite nice.
From my standpoint, Market is going down of course, but I'm also long 1/2 stocks so I don't really have a big perference where its going.
AGO -'s not looking good
HCC - ZzzZZz
All in the money though
I guess what can we learn from this?
Diversification.
I read a few weeks ago , Warren buffet was investing in korean stocks
He went into the korean market with his own personal account
and bougght shares of over 20-30 companies
Why?
I think as investors, sometimes it is a hit and miss, Who knows what will go up,
But if we put our money in 10 great companies, at least 3 of them will fly to the moon.
So what have we learned this week
1) When swing trading don't use large size, loosen stops because when swing trading, most likely its not going to go straight down mainly because there is no catalyst when we enter a swing.
2) Diversification, Now this isn't over 30-40 companies, buffet just has a lot of money, but we are talking about 5-6 companies.
Diversify over countr and technologies.
3) Don't use small stops when swinging, Use small size.
Stops sometimes can't be controlled in non - pressured stocks.
Now I can't control the stock movements, but I can control the size.
Stops do have to be used carefully though ,even a small sized wide stop will be stopped out if entered incorrectly/wrong price action.
4) I have work to do,
I have money to make,
I'm finally realized, theres no way to swing a bigggie/quick money with capital in the markets,
Its all done step by step slowly.
If you want big money FAST, run something else.
5) Always be flexible in thinking what can make money.
Short
LEN
KBH 's
All looking quite nice.
From my standpoint, Market is going down of course, but I'm also long 1/2 stocks so I don't really have a big perference where its going.
AGO -'s not looking good
HCC - ZzzZZz
All in the money though
I guess what can we learn from this?
Diversification.
I read a few weeks ago , Warren buffet was investing in korean stocks
He went into the korean market with his own personal account
and bougght shares of over 20-30 companies
Why?
I think as investors, sometimes it is a hit and miss, Who knows what will go up,
But if we put our money in 10 great companies, at least 3 of them will fly to the moon.
So what have we learned this week
1) When swing trading don't use large size, loosen stops because when swing trading, most likely its not going to go straight down mainly because there is no catalyst when we enter a swing.
2) Diversification, Now this isn't over 30-40 companies, buffet just has a lot of money, but we are talking about 5-6 companies.
Diversify over countr and technologies.
3) Don't use small stops when swinging, Use small size.
Stops sometimes can't be controlled in non - pressured stocks.
Now I can't control the stock movements, but I can control the size.
Stops do have to be used carefully though ,even a small sized wide stop will be stopped out if entered incorrectly/wrong price action.
4) I have work to do,
I have money to make,
I'm finally realized, theres no way to swing a bigggie/quick money with capital in the markets,
Its all done step by step slowly.
If you want big money FAST, run something else.
5) Always be flexible in thinking what can make money.
3) Don't use small stops when swinging, Use small size.
Stops sometimes can't be controlled in non - pressured stocks.
Now I can't control the stock movements, but I can control the size.
Stops do have to be used carefully though ,even a small sized wide stop will be stopped out if entered incorrectly/wrong price action.
-------------------------------------------------
Could you expand a bit more on this. I've noticed how extremely tights your stops have often been. I've wondered how is it possibly to be so tight in swing trades and make any profit. Are you going to allow for more room now -- how much more room in relation to size reduction.
Stops sometimes can't be controlled in non - pressured stocks.
Now I can't control the stock movements, but I can control the size.
Stops do have to be used carefully though ,even a small sized wide stop will be stopped out if entered incorrectly/wrong price action.
-------------------------------------------------
Could you expand a bit more on this. I've noticed how extremely tights your stops have often been. I've wondered how is it possibly to be so tight in swing trades and make any profit. Are you going to allow for more room now -- how much more room in relation to size reduction.
pbw,
A small stop , lets say 5-10 cents can be used if you know there is buying pressure.
Usually the stops are just placed before the last bars low or high.
You have to know the chart patterns to differentiate it but
the simplest is ,
When there is buying pressure , the specialist or market maker will not break lows multiple times in a row (unless its chop)
Because they need to buy some stock!
When there is no buying pressure, the specialist just fluctuates the price for no reason basically because there is no pressure. Sort of like a car driving in a parking lot, no reason to drive faster,
But a car driving in a forumala 1 race, needs to keep up speed, faster and faster!
He can't stop and take a piss break.
So most of all you have to recognize
1) If there is buying pressure,
If there is
2) You have to recognize precise chart patterns, lets say a cup pattern (I don't use this but this is a very good example)
A cup pattern that is going up will never break a low when going up.
I use precise candle sticks, not just general patterns so , make sure its precise.
If there is no buying pressure (getting into a swing trade)
NOTHING works other then the previous DAYS low or high , The specialist is just running price around in range.
This is why daytraders can put on size and control risk, daytraders can use last 3 MINUTE bars low and high and risk can be controle very precisely.
Hope this helps.
A small stop , lets say 5-10 cents can be used if you know there is buying pressure.
Usually the stops are just placed before the last bars low or high.
You have to know the chart patterns to differentiate it but
the simplest is ,
When there is buying pressure , the specialist or market maker will not break lows multiple times in a row (unless its chop)
Because they need to buy some stock!
When there is no buying pressure, the specialist just fluctuates the price for no reason basically because there is no pressure. Sort of like a car driving in a parking lot, no reason to drive faster,
But a car driving in a forumala 1 race, needs to keep up speed, faster and faster!
He can't stop and take a piss break.
So most of all you have to recognize
1) If there is buying pressure,
If there is
2) You have to recognize precise chart patterns, lets say a cup pattern (I don't use this but this is a very good example)
A cup pattern that is going up will never break a low when going up.
I use precise candle sticks, not just general patterns so , make sure its precise.
If there is no buying pressure (getting into a swing trade)
NOTHING works other then the previous DAYS low or high , The specialist is just running price around in range.
This is why daytraders can put on size and control risk, daytraders can use last 3 MINUTE bars low and high and risk can be controle very precisely.
Hope this helps.
SHORT
AAPL - NICE!
I have to say every single short signal I had were almost 95% on the money.
Whats the idea behind shorts,
Now I'm trying to think over my edge,
Shorts Vs Longs
1. Every investor buys longs
2. 95% investors lose money.
3. Longs can make 300% Shorts can't
4. Takes 1 year to make 30% and 5 days to drop 30%
SNDK
sndk
5. Abillity to pyramid
Shorts
1. Highly volatililty , Higher risk in a sense?
Maybe maybe not. Higher volatility AFTER drop
not WHILE Dropping
2. Fast money. 2 weeks top 15%
3. No ability to Pyramid. Full size in the begining of the trend or higher risk.
4. Need to take profits FAST . No dancing around or you'll lose it in 2 days
Who knows..
Its part time for me now
Who really knows.
AAPL - NICE!
I have to say every single short signal I had were almost 95% on the money.
Whats the idea behind shorts,
Now I'm trying to think over my edge,
Shorts Vs Longs
1. Every investor buys longs
2. 95% investors lose money.
3. Longs can make 300% Shorts can't
4. Takes 1 year to make 30% and 5 days to drop 30%
SNDK
sndk
5. Abillity to pyramid
Shorts
1. Highly volatililty , Higher risk in a sense?
Maybe maybe not. Higher volatility AFTER drop
not WHILE Dropping
2. Fast money. 2 weeks top 15%
3. No ability to Pyramid. Full size in the begining of the trend or higher risk.
4. Need to take profits FAST . No dancing around or you'll lose it in 2 days
Who knows..
Its part time for me now
Who really knows.
Perhaps you could adjust your style or change styles completely in order to get the returns you are seeking? Just b/c you've worked hard on your current system, doesnt mean that you cant scrap it altogether and start from scratch.
Hello Steve,
That post was worded incorrectly,
Actually I think this system is about as good as it gets for swing trading/daytrading pure Tech Analysis wise (not tape reading) IMO
It accurately defines specific stop prices and turning points for start of new trends.
I'm probably just not comfortable right now putting on bigger size because of bigger stops.
But I believe that is the key to LARGE POSITIONS :
because tick trends are weaker then min trends are weaker then day trends are weaker then week trends.
So the likely hood of me being stopped out is much less but more costly if I was.
Pros and cons
Probably just need more time , smaller size
build up more of a track record
Wider stops are a whole new ball game for me.
<b>Maybe that is where the major league is.</b>
It will be revealed as we continue progressing in this journal
That post was worded incorrectly,
Actually I think this system is about as good as it gets for swing trading/daytrading pure Tech Analysis wise (not tape reading) IMO
It accurately defines specific stop prices and turning points for start of new trends.
I'm probably just not comfortable right now putting on bigger size because of bigger stops.
But I believe that is the key to LARGE POSITIONS :
because tick trends are weaker then min trends are weaker then day trends are weaker then week trends.
So the likely hood of me being stopped out is much less but more costly if I was.
Pros and cons
Probably just need more time , smaller size
build up more of a track record
Wider stops are a whole new ball game for me.
<b>Maybe that is where the major league is.</b>
It will be revealed as we continue progressing in this journal
KBH / AAPL LEN
I'm all short, will continue their down trend this week.
May be some short killings,
But any rallies will be shorted into by the players.
hopefully, it'll stabilize instead of short kills
KBH
I might hedge if the market gets real strong because it may rally back up to 68
May be my best trade of the year.
kbh
HCC - Almost at the very bottom , This is value pickings for long term investors right here.
$32.00 is value pickings.
Now I understand how investors operate, Their mindset
because I have the same mindset as them.
And I think I can adapt it into the wide scale.
NVT : Quite a sad thing I missed out on it isn't it, already $48, Up $2 up 5% Good stock I tell you
But I don't worry, Lets pick it up when it dropos a little
I woke up late today, 9:30 , but I didn't even care , mostly because I was hedged, and mostly because I did not care if the market was going to rally or fall,
because either way , My stocks that will rally, will rally, my stocks that are short will go down.
Either way I feel protected.
And I think that is the key to the markets, to be HEDGED, PROTECTED and to MAKE money at the same time.
You know, This is truely 100% much better then daytrading (for me) because I have no real super edge like the tape readers or specialists or mms.
I'm all short, will continue their down trend this week.
May be some short killings,
But any rallies will be shorted into by the players.
hopefully, it'll stabilize instead of short kills
KBH
I might hedge if the market gets real strong because it may rally back up to 68
May be my best trade of the year.
kbh
HCC - Almost at the very bottom , This is value pickings for long term investors right here.
$32.00 is value pickings.
Now I understand how investors operate, Their mindset
because I have the same mindset as them.
And I think I can adapt it into the wide scale.
NVT : Quite a sad thing I missed out on it isn't it, already $48, Up $2 up 5% Good stock I tell you
But I don't worry, Lets pick it up when it dropos a little
I woke up late today, 9:30 , but I didn't even care , mostly because I was hedged, and mostly because I did not care if the market was going to rally or fall,
because either way , My stocks that will rally, will rally, my stocks that are short will go down.
Either way I feel protected.
And I think that is the key to the markets, to be HEDGED, PROTECTED and to MAKE money at the same time.
You know, This is truely 100% much better then daytrading (for me) because I have no real super edge like the tape readers or specialists or mms.
Important lessons in
The art of Tech Analysis trading
Is knowing when to exit,
To know when to exit , you must know your target,
Exit too early, you have regrets, Exit too late , You get slaughtered.
When there is no target, There is no motivation, There is no fear.
When there is a target, there is fear, there is greed, There is price movement.
To determine targets, one must understand the idea of the mouse and the cheese.
I've been reading some stories about trades espically the asian raids by ivy leaguers back in the 90s or so
Everything is about information and knowledge.
Sure things.
We are at a disadvantage against people who have info, Does TA tell the information?
Are we at a disadvantage?
Or are we just a step behind but can still profit immensely?
I see prop traders from large hedge funds are not in the business of trading.
They are in the business of managing propiertory information.
Maybe we can discover information from price action.
Or can't we.
Or can we.
But all in all.
Targets , Exits , What we require to make extremely confident trades.
Key to FU trades.
Theres trades, and then there is FU trades. I'd like to make a FU trade,
But the time has not come.
The art of Tech Analysis trading
Is knowing when to exit,
To know when to exit , you must know your target,
Exit too early, you have regrets, Exit too late , You get slaughtered.
When there is no target, There is no motivation, There is no fear.
When there is a target, there is fear, there is greed, There is price movement.
To determine targets, one must understand the idea of the mouse and the cheese.
I've been reading some stories about trades espically the asian raids by ivy leaguers back in the 90s or so
Everything is about information and knowledge.
Sure things.
We are at a disadvantage against people who have info, Does TA tell the information?
Are we at a disadvantage?
Or are we just a step behind but can still profit immensely?
I see prop traders from large hedge funds are not in the business of trading.
They are in the business of managing propiertory information.
Maybe we can discover information from price action.
Or can't we.
Or can we.
But all in all.
Targets , Exits , What we require to make extremely confident trades.
Key to FU trades.
Theres trades, and then there is FU trades. I'd like to make a FU trade,
But the time has not come.