Trading Dummies

Quote from Babak:

Kevin,

I missed this one too (you can't really expect to catch them all! :))

But let me ask you, why would you have been going long? Personally, those two dark candles at the beginning of market as well as the overall multi-day trend would have made me think go short.

YELL was another doji btw (15 min chart)
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I think the second breakout of the day was a no brainer, good trend, and a tight stop would have created a decent gain. The early trade, I agree, would have been risky.

Anyone else trading dummy feel free to step in!
 
Quote from jerry5050:

Babak

Thanks for this thread. Enjoying it a lot.

Kevin, what parameters are you using in Trade-Ideas?

Jerry
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I use a few different scanners, TI being my favorite...the following are scanned criteria throughout my scanners:
Strong volume gainers, % gains, % lossers, new 52 week high, new 52 week low

still trying to find new ones.

anyone else have TI recs?
 
One stock I did catch was SIRI. It was a pretty simple low risk trade...but I got out late considering I was not monitoring it. If anyone has any better ideas but the 5ema for a mechanical stop...please say so!
 

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Nice trades Kevin.

Just one thing though, I think we have different defn of inside bars. I would call the fourth candle (SIRI chart) an inside cande since both its high and low were contained by the previous one. The fifth candle would also have qualified for the same defn. But the sixth one which you point to isnt one.

Or am I missing something?
 
Quote from Babak:

Nice trades Kevin.

Just one thing though, I think we have different defn of inside bars. I would call the fourth candle (SIRI chart) an inside cande since both its high and low were contained by the previous one. The fifth candle would also have qualified for the same defn. But the sixth one which you point to isnt one.

Or am I missing something?
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I agree with your definition of inside bar, but the bar i pointed to was more of a tight bar.
 
Quote from Babak:

MATK was also another pre mkt gapper. I won't kid you, this sucker was a tough one. First of all it gaps down hard. So you're thinking it will bounce, right?

And yes, it does. For two bars. It then forms a doji. A doji fer Petessake!

What are dummy traders supposed to do with that?


If you were to go short your stop would go above the recent swing high. As shown on the graph. Its important to note that there was a clear downtrend from previous days trading.

In the end, this one was a very tricky sucker and if you got out with a profit, consider yourself either skilled or lucky (or both!). But I wanted to show it as an example of how to handle dojis.
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I love setups like that. The trend was down (I'd base that on the EMAs I use -- a 10 and 20 EMA) and it printed that doji after an upward retracement. I would have been looking to get short below the doji.


Mike
 
Mike and to anyone else:

- How much slippage do you encounter generally when entering and being stopped out? I was wondering how much it impacts overall performance.

- Do you position size each trade to include slippage and/or commissions?

TIA
 
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