Trading Dummies

I started studying chairman's chart the whole weekend and I have a long way to go... However I did leave him a message that this is the first time I actually enjoyed studying a trading system..

Here is my first effort... I am sure somebody could find an earlier entry.. VPHM 's stop was at 19.22 entry at 19.42. Rode it till close.

Would appreciate if you would point out my mistakes..

thank you.
 

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milan, congrats on a great trade!

Just one Q. Were you watching for the inside candle that formed at noon? If so the buystop would go just above it and the stop below it. The way you've drawn it, I'm not sure if that's the way you planned it or whether you've taken the next candle as the signal candle (long up candle at 12:15). Oh, and one more thing, how did you choose VPHM? did it come up on a scan or where you watching it from before?

You bring up a good point though, that dummies can set up almost anytime during the day. The morning is a good time to catch them as trends launch then but a good entry is a good entry.

:)
 
Thank you. VPHM came up on my cyber screener as a new high.
The 12 pm candle I believe closed at $19.40 and my buy stop limit was 19.42. More luck than brains, but I start understanding the principles of the system.
With regard to the screener I am flirting with trade ideas, even though cyber screener combinations are not bad.
The gap up screener did bring couple of stocks, but I could not locate the inside bar.
 
After spending some time studying the pattern, it seemed pretty sound. So I decided to give it a try.

Yesterday I did 3 little dummy trades, using about 5k$ each time.

The first one of them hit the tight stop I had set and lose some 30$. The second was up about 50$, then my 11 yo son came in back from school. I proudly showed the chart to him, pointing all the way up (I want to teach him how to trade; I hope he will be better than me so I can retire and live on his shoulders). While I was talking I mistakenly hit the "Sell" button and gained 50$.

The third I entered a little bit late but was resolved to be as precise as possible from then on. In the meantime my son had gone home having lunch. The trade is in the attachment. Got in at 9.67 and almost triggered the breakeven stop at 9.74. Since it was a small trade, I decided to hold the position overnight. Sold it today at 10.07, for a gain of slightly more than 200$. Notice 200$ on 5000 equals to 4%.

I plan to do and post some more dummy trades, when I'll have time to.

Have fun.
-GS
 

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The morning was tough. The charts were a ping pong game. Got stopped out on APA PEC and NSR. I am learning the hard way to determine the trend. In the afternoon after 2pm the screener spilled some uptrending stocks like CRDN and THE with valid signals, even though the general trend was still negative. These 2 stocks erased all my losses from the morning.
Could not get shorts on NTES which could have made me some solid coin.
The 1:45 countertrend candle gave a signal to short BIDU at
75.51 which I covered at72.50, was afraid to hold it longer.

Here is BIDU.
 

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LCC is the new airline ticker (low cost carrier - cute, eh?) and it had its first day of trading today.

It offered a long dummy trade at noon and a short dummy trade around 1:00 pm (if you reversed from the long). Very unusual.
 

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NTES was on the scanner in the morning but did not give any follow thru. It fell and didn't give a dummy entry long until much later - and that didn't work out too well either. In hindsight, it would have been a great short.
 

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CTIC came up on the scanner in early morning and it was on fire. Stocks like this usually do not give dummies entries because they just don't pause - definitely not for what would allow a 15 min. counter trend candle to form. You can either forget them, or switch to a lower time frame and get in on the action.

The chart is 5 min. but look at 2 min and you'll see a small consolidation under 2.50 and then a dummy entry long as it broke above that level.

Also, take a look at Mike's recent post on his blog about exits. Some good ideas which you may want to try out:

http://tradermike.net/2005/09/focus_on_exits
 

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Just closed another dummy trade. Bought SCLN yesterday at 5.59 and sold today on open at 5.83. I'm using both 5 and 15min bars.

-GS
 

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