Trading Dummies

Read all the lessons in the link (Maoxian) mentioned in the first post and then read the whole thread and walk through the many examples.
 
Today's trade was ECA entry @ 50.08, stop @49.77 and forced myself to hold it almost until the end. Sold at 51.10. R=3.5

What is worse, is that I had an entry into BCRX @13.70 and chickened out @13.66. The stock flew up to 15.05. The exits need to be worked on.
 

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Razor,

Looking at your HELE chart, I'm interested to know how you define an inside bar, and do you always keep strictly to the definition?

Could you perhaps have entered earlier?

Thanks,

nimrodeo
 
Hi nimrodeo,

First I decide if I want to go long or short, then I wait for the inside bar (defined as high is lower than previous bar high and low is higher than previous bar low). When I see the inside bar I then wait for the high of that bar to be taken out (if going long) or if not on the next bar I just keep waiting until the high of the previous bar gets taken out all the way up until about 12pm where I then call it quits. I try to stick to the rules pretty strictly.

Hope this helps.

Cheers :D
 
Hi opw,

I agree; however, I usually always trade with the trend when buying gap ups but I tend to believe that gap downs tend to fill more so I leave myself the option of going long or short the gap downs.

Hope this didn't confuse anyone :D

Cheers :D
 
SIMG was a rocket that you had to drill down to 5 min. to be able to ride. No idea what they do or why it blasted off. Maybe they discovered a way to give Paris Hilton class.

Who knows :confused:

Yellow circle is when I noticed it on the scanner (I suspect it was caught much earlier). Note that if you had caught it earlier than me, you had a lower 'dummy' entry.
 

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Although I have never traded dummies before I just wanted to point out a couple of possible dummy trades I came across today. Both trades were using 5 minute bars. The first was UNH going long when the 4th 5 min bar was broken to the upside at 56.10. The second trade was going short KBH when the low of the 5th 5 min bar was taken out at 64.85 or so, although the bar was not completely inside the previous bar it still would have worked out. Both trades also had really nice r/r ratios and KBH gave a nice target as it filled the gap.
 
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