Trading breakouts [By The Book]

Making some changes to how I'm going to trade these "Breakouts".

These past few pages haven't been all that successful. Maybe it's due to not trading BO's very well, or the simple and common fact that breakouts fail more often then they run to the moon.

Another reason for the difficulty I'm having is because pro traders know that newbs are looking to buy these areas. While, I'm not a newb, I do stick to a set of rules but being bunched in with other losers is not appealing to me.

So...

This journal is now about trading price failures around the major swing pivots.

We are going to wait for a break, wait for the retracement (which will happen if the break is false), then short the fib extension levels where price is known to run out of steam .

Because these fib extensions are quantifiable, we can consistently use small stops while expecting price to fail and run back down to the area of the original breakout.
 

Attachments

Quote from konviction:

Update:

4/12/12 cover 100 cvx - 352

4/23 stopped 500 fro - 1760

5/4 stopped 300 lvs - 1695

5/21 covered 200 deck + 1624

total pnl : -2183
More...

Update:
Still taking classes so I havn't paid any attention to the forums. Maybe one day I can get back into this more actively. Supposed to graduate in December.

looking back
Should have held DECK longer.
 
Quote from konviction:

Update:
Still taking classes so I havn't paid any attention to the forums. Maybe one day I can get back into this more actively. Supposed to graduate in December.

looking back
Should have held DECK longer.
More...

Brother man there are no shouldas, no couldasi, and no wouldas in trading nor in life.

The phrase "next time I will" because of "so and so" may be a better model for reprogramming your brain than lamenting the past.

Wish you the best with finishing school and getting back. Hope you find your niche.


-Kid
 
Quote from konviction:

Got AMZN at 206.96 / stop 194.97.
More...

AMZN In review:

The execution on this couldn't have been worse. Bought right into the highs.

Should have sold this the very next day after seeing the daily candle was a pin bar (very bearish)

I need to figure out how to "SHORT the pops & go long the drops"........ go against the conventional wisdom and think outside the box. Go against the crowd.

Only problem with this is that sometimes I will be stepping in front of the money train and get my ass run over....other times I will be the one laughing as everyone gets caught buying the highs.

Figuring this out will be a challenge.

On the positive side, it sure shot up pretty damn fast after I got stopped lol.

Net PnL still stands at 2,183
 
starting off again small with 120 OCN short @ 36.75

This time I'm shorting the breaks. Today is ending in the red so I hope/expect to see more selling next week.
 
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