Trading Dummies

FORM was another premkt active/gapper but it did not continue to run. There are many others like FORM - that's why you have to be disciplined and take your -1R.
 

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Quote from Babak:

FORM was another premkt active/gapper but it did not continue to run. There are many others like FORM - that's why you have to be disciplined and take your -1R.
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The trends are pretty shaky theses days. I do realize that the stops are based on the position of the inside or countertrend bars. In days like yesterday or today would you consider to place the stops a little wider with smaller positions?

thanks:confused:
 
milan, you bring up a good point. As I've said in the thread, the "dummy" trades are a simple skeleton of a strategy. You have to bring much more to the table. For example, you may approach the day with a bias based on opening range, or based on other TA or you may do as you suggest which is to adjust risk (stop loss/size of position) depending on the choppiness of the market action. These tweaks and more, are each person's responsability.

btw GOOG and BIDU each offered beautiful dummy entries long in after hours. GOOG at $330.40 and BIDU at $68.80 [ 10 min. ]
 
Babak, have you summarized your results with the "Dummy" strategy anywhere?

Don't worry, I'm not intending to criticize your results or anything - hell, gappers on volume is one of the few things I'd put my faith in if I was to daytrade again - I'm just curious as to how it's all working out for you.
 
Yet again, a chart of BOT with several 'dummy' spots shown. You may ask, why the long bias?

You have to think about BOT with the frame of reference provided by CME. You either have people who were long CME and enjoyed a serious multi-bagger - these very few are kicking themselves for not putting on bigger size. And then you have the vast majority who kick themselves for having missed the move altogether.

Not surprisingly, BOT looks like a darned good way to make up for 'the mistake' for both camps.
 

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Interesting thread - I have not heard of "Dummies", but many of the concepts are similar to how I trade.

You guys might be interested in a blog I read - it was actually a website last year (not selling anything, just posting charts), and he moved it to a blog a few months back. He posts charts everyday, and many are similar to the setups for Dummies posted at the site listed on the first page of the thread.

Take a look through the charts - traderx.blogspot.com.

Good luck.
 
CD wouldn't be a Maoxian dummy. His method is to follow trends. That gap up would establish an uptrend so you'd be looking long.

Good trade though. What made you decide to go short? Or were you just going to go with whatever direction it broke from that inside bar?
 
Quote from chud:

That gap up would establish an uptrend so you'd be looking long.
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A gap up does not necessarily establish and uptrend - it depends on your timeframe. CD has been in a downtrend since mid-year.

Good trade IMO.
 
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