The adventures of a new Trader

cm69,

I ran across your journal here and read it.
I have to compliment you on your honesty along the way.
You have reported the good, the bad, and the ugly and just kept going like the Energizer Bunny.
Here is a friendly suggestion from an older trader on a successful technique that I have used for years:
Since you started this adventure on July 11, 2006,
the SPX and Nasdaq are up roughly 15%.
Ask yourself a question:
Is you account up 10% to 15% since July 11th?
If the answer is yes, then you have done a good job.
If the answer is no, here is why:
The Nasdaq has been in a powerful uptrend since late August.
Bring up a 1 year chart of the $COMP (Nasdaq) with daily candles
and display the 20 day moving average and 50 day moving average.
When the rising 20dma is above the rising 50dma, this indicates we have a strong intermediate term uptrend.
Under these conditions I only go long on swing trades and I only trade uptrending stocks that have made a recent new monthly high and have now pulled back to their rising moving average support.
I want to see 3 to 5 consecutive negative candles with consecutive lower highs and then a narrow range bar or hammer candle at or around a support MA or a trendline.
The next day my entry is a price move 5 cents above the narrow range bar or hammer candle.
My initial Target is a 5% rise above my entry or the prior rally high, whichever is the lower of the two.
My stop is 11 cents under the lowest low of the prior two candles.
If the stock moves up +1.00 but I am not yet at the Target goal, I sell one half the position and move the stop to breakeven or
5 cents under the prior day's low, whichever is the higher of the two prices.
I give each trade a total of 5 days from entry day and if all or some of the position still remains open near the end of the 5th day, I close it.
This is classical swing trading learned in multi-day training schools many years ago.


Jeff
 
Quote from jeffalvinson:

cm69,

I want to see 3 to 5 consecutive negative candles with consecutive lower highs and then a narrow range bar or hammer candle at or around a support MA or a trendline.
The next day my entry is a price move 5 cents above the narrow range bar or hammer candle.
My initial Target is a 5% rise above my entry or the prior rally high, whichever is the lower of the two.
My stop is 11 cents under the lowest low of the prior two candles.
If the stock moves up +1.00 but I am not yet at the Target goal, I sell one half the position and move the stop to breakeven or
5 cents under the prior day's low, whichever is the higher of the two prices.
I give each trade a total of 5 days from entry day and if all or some of the position still remains open near the end of the 5th day, I close it.
This is classical swing trading learned in multi-day training schools many years ago.


Jeff

That is exactly how I now swing trade!!!
 
Jeff,


I can visualise what you are saying. IMHO, I would like to add that saying 5 cents or 11 cents etc is not that accurate because it really depends on a stock's volatility and ATR. How many cents above/below etc should be based more on stock's volatility and ATR rather than a fixed figure.

Quote from jeffalvinson:

cm69,

I ran across your journal here and read it.
I have to compliment you on your honesty along the way.
You have reported the good, the bad, and the ugly and just kept going like the Energizer Bunny.
Here is a friendly suggestion from an older trader on a successful technique that I have used for years:
Since you started this adventure on July 11, 2006,
the SPX and Nasdaq are up roughly 15%.
Ask yourself a question:
Is you account up 10% to 15% since July 11th?
If the answer is yes, then you have done a good job.
If the answer is no, here is why:
The Nasdaq has been in a powerful uptrend since late August.
Bring up a 1 year chart of the $COMP (Nasdaq) with daily candles
and display the 20 day moving average and 50 day moving average.
When the rising 20dma is above the rising 50dma, this indicates we have a strong intermediate term uptrend.
Under these conditions I only go long on swing trades and I only trade uptrending stocks that have made a recent new monthly high and have now pulled back to their rising moving average support.
I want to see 3 to 5 consecutive negative candles with consecutive lower highs and then a narrow range bar or hammer candle at or around a support MA or a trendline.
The next day my entry is a price move 5 cents above the narrow range bar or hammer candle.
My initial Target is a 5% rise above my entry or the prior rally high, whichever is the lower of the two.
My stop is 11 cents under the lowest low of the prior two candles.
If the stock moves up +1.00 but I am not yet at the Target goal, I sell one half the position and move the stop to breakeven or
5 cents under the prior day's low, whichever is the higher of the two prices.
I give each trade a total of 5 days from entry day and if all or some of the position still remains open near the end of the 5th day, I close it.
This is classical swing trading learned in multi-day training schools many years ago.


Jeff
 
12/13/06

Bought 200 ERTS @ 52.61

12/27/06

Sold 200 ERTS @ 50.81

Stops: 50.81 (1.80)
PT: 55.70 (3.09)

profit -374.00 after coms

review:

I had much confidence in this trade but it failed to play out the way I had hoped it would. there was a nice bounce on the 13th - 15th, but the rally fizzled, and I'm not sure why other than looking at the weekly charts and finding that support may not come until 47.00. I probably should have paid more attention to resistance on daily charts, but I thought that the rally would easily break it. Again on the 21st, bulls tried to come back, but the bears are too strong right now.

---

12/6/06

Bought 120 WAG @ 43.92

12/15/06

Added 80 shares to position @ 44.70

12/28/06

Sold 200 WAG @ 46.20

Stops: 42.00 (1.92)
PT: (47.00 target not hit)

profit 372.60 after coms

review:

I'm very disappointed. This is one of the longest trades I ever put on, and in the end, I got screwed over. I cant blame anyone but myself, but after holding for just about all freakin month.. I end up losing 1.40 dollars. A very small loss, but I could have made 746.60 if both trades were profitable. After I saw that my profits in ERTS had melted away, I took what I could from this trade.
 
1/4/07

bought 100 ERTS @ 51.90

1/5/07

sold 100 ERTS @ 53.16

stops: 50.00
pt: 54.00

profit 112.00 after coms

---

1/3/07

bought 100 wmt @ 47.10

1/8/07

sold 100 wmt @ 47.24

stop: 47.24
pt: 50.00

profit 14.00 (break even after coms)

--

review:

The rally on ERTS was again, short lived, but this time I came out with something. On WMT, I bought after the gap, because I thought the new up-trend produced by the gap would spark a rally.
 
1/9/07

Bought 100 PNRA @ 56.73

1/11/07

Sold 100 PNRA @ 57.48

Stops: 56.30
PT: 59.00 (missed)

profit 61.00 after coms

review:

I sold this because of a weak trend on daily charts, and it's WAY TOO choppy on the 60 minute chart making it hard to really find any s/r.

--

1/8/07

Bought 80 SNDK @ 44.24

1/11/07

Sold 80 SNDK @ 44.66

Stops: 43.80
PT: 46.00 (missed)

profit 19.60 after coms

review:

Just felt like selling before SNDK slipped even further negative, and to free up some more cash.
 
Goals for 07

As of last year, I made 6,795.68, and lost 9,728.86.

I had a net loss this year of 2,933.28 .

On average I made 566.31 a month, while losing 810.74

----



I am still working on developing a strategy for trading gaps, but

I'm still in the process of collecting charts for analyzing. Time

frame is another area that I need to refine more. I've had trades

that lasted for a single day, and some that lasted for a month.

Patience is one thing I'm also going to try and work on, which is

why holding a position for more than a week is hard. In time I

hope this problem works itself out. The use of Indicators is

something I'd like to excel at this year. While they make trade

decisions a little more confusing, they also give me confidence.
 
Quote from cashmoney69:

Goals for 07

As of last year, I made 6,795.68, and lost 9,728.86.

I had a net loss this year of 2,933.28 .

On average I made 566.31 a month, while losing 810.74

----



I am still working on developing a strategy for trading gaps, but

I'm still in the process of collecting charts for analyzing. Time

frame is another area that I need to refine more. I've had trades

that lasted for a single day, and some that lasted for a month.

Patience is one thing I'm also going to try and work on, which is

why holding a position for more than a week is hard. In time I

hope this problem works itself out. The use of Indicators is

something I'd like to excel at this year. While they make trade

decisions a little more confusing, they also give me confidence.

Chalk the loss up to education if,and only if you can figure out whether you had exit problems, entry problems(signal), or both and why.
 
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