Trading Strategies for Swing Trading and Daytrading
- Thread starter candletrader
- Start date
Tony,
I understand your method on this one...makes sense to me...but there is something about that spread that just doesn't seem to ring right for me...must be I just have it drilled into my head not to touch a stock with so large a spread...kinda like hope...it doesn't belong in my trading...no I did not take offense...I know you...you are one of the better people here...you have done a lot for many people and have never asked for anything in return...that puts you high up on my list.
I understand your method on this one...makes sense to me...but there is something about that spread that just doesn't seem to ring right for me...must be I just have it drilled into my head not to touch a stock with so large a spread...kinda like hope...it doesn't belong in my trading...no I did not take offense...I know you...you are one of the better people here...you have done a lot for many people and have never asked for anything in return...that puts you high up on my list.
Many times stocks that show up on this can can open nasty spreads. This is why I trade them small. This is also why I have a field in my calculator for position sizing based on liquidity. When I bought the stock, the spread was 0.12 and I bought the bid. Then a few hundred shares traded both on the bid and offer and the spread open. I thought the trade was dead, but bidders came back. Anyhow, I have traded this pattern for many years, and even so, I waited a long time before I got in the trade. I always tell my students that this one is one of the hardest setups to master. It takes a lot of experience. However, I have a student from the August seminar I did in Irvine who consistently (5 weeks) makes 3K-5K off this scan after watching it for a month.
I don't encourage anyone to trade against their comfort level or to jump into this scan blindly. We will see how ORBK does on Monday, but in the meantime here is a list of the final New Kid scan.
Please note that the following showed up yesterday:
WEBM
FILE (I almost took the trade yesterday, wish I did)
TTEK (Has been on for three days)
IMDC (also three days in a row)
There are some great opportunities in this scan, and no one can compete with the reliability and speed of the alerts. God bless RealTick and I sincerely mean it
I don't encourage anyone to trade against their comfort level or to jump into this scan blindly. We will see how ORBK does on Monday, but in the meantime here is a list of the final New Kid scan.
Please note that the following showed up yesterday:
WEBM
FILE (I almost took the trade yesterday, wish I did)
TTEK (Has been on for three days)
IMDC (also three days in a row)
There are some great opportunities in this scan, and no one can compete with the reliability and speed of the alerts. God bless RealTick and I sincerely mean it
Tony,
I hope you don't mind, but I am gonna reproduce the statement here ... these words will help us all to steer clear of bad trades:
"The most important lesson, however, is found in each and every case study I have featured. It has to do with religiously adhering to the rules and guidelines of a trading system. I know for a fact that my discipline in executing each and every trade according to my trading system is the secret to my success. This is why I had the courage to accept this challenge.
[for people who haven't read the book, Tony's challenge was to trade a $50k account for a month, without going short]
When I started seminars about high probability short-term trading, my performance chart was improving on a consistent basis. The reason was that every time I was tempted to break a rule, I would ask myself, 'How are you going to explain this to one of your students?' This question has taken my trading to the next level"
Print the above out and stick it near your monitor, guys ... it will help keep you out of bad trades.
Candle
I hope you don't mind, but I am gonna reproduce the statement here ... these words will help us all to steer clear of bad trades:
"The most important lesson, however, is found in each and every case study I have featured. It has to do with religiously adhering to the rules and guidelines of a trading system. I know for a fact that my discipline in executing each and every trade according to my trading system is the secret to my success. This is why I had the courage to accept this challenge.
[for people who haven't read the book, Tony's challenge was to trade a $50k account for a month, without going short]
When I started seminars about high probability short-term trading, my performance chart was improving on a consistent basis. The reason was that every time I was tempted to break a rule, I would ask myself, 'How are you going to explain this to one of your students?' This question has taken my trading to the next level"
Print the above out and stick it near your monitor, guys ... it will help keep you out of bad trades.
Candle
Neo, here's how I play the morning. Place a Buy Stop at the high of the previous days' 15-minute bar. If the stock is strong you will be filled (assuming no gap), and weak you won't be filled (usually). After being filled place a tight stop about 1% below price and trail up as the stock rises. Watch the market and if its getting weaker move your stop closer to the current price. Its possible to make good money in the first 15 minutes, but my intention is to ride an uptrending stock all day. But this doesn't happen too often so you have to be prepared for a good scalp.
Here's EMLX yesterday and how I would've played it. This is a high percentage play if managed correctly.
Here's EMLX yesterday and how I would've played it. This is a high percentage play if managed correctly.
@neo
I'll give it a shot ... and wait for some correction by the pros here on board
Pic 1 and 2: As far as I understand the scan it will not show up until trading over yesterday's high.
Pic 3: This one is my biggest concern - I often try to chase the stock after gapping open above yetserday's close - fearing that the stock will go up and never look back - but I found that this will not happen too often (in this choppy market environment
)
In general your examples would be trtaded best with the reversal day strategy, I think.
Reagarding stops I often tried to set stops as close as possible at intraday support levels - the stock often went up a bit but I didn't go out - waiting for a nice "swing" up - but I think my mistake is setting stops at intraday resistance-levels on a 3 or 5-minute chart basis - so there often will be a short move upwards and on the way back the resistance level will not hold - if you want a longer swingtrade, you should serach for support on a longer term timeframe (than a 3-minute-chart) - any comments ?
I will look back at my trading log and see if I would have done better in hindsight if I just placed my stop under the low/above the high of the day before the trade ...
@ddefina
Do you mean last 15-minute-bar of yesterday ?
I'll give it a shot ... and wait for some correction by the pros here on board
Pic 1 and 2: As far as I understand the scan it will not show up until trading over yesterday's high.
Pic 3: This one is my biggest concern - I often try to chase the stock after gapping open above yetserday's close - fearing that the stock will go up and never look back - but I found that this will not happen too often (in this choppy market environment
)In general your examples would be trtaded best with the reversal day strategy, I think.
Reagarding stops I often tried to set stops as close as possible at intraday support levels - the stock often went up a bit but I didn't go out - waiting for a nice "swing" up - but I think my mistake is setting stops at intraday resistance-levels on a 3 or 5-minute chart basis - so there often will be a short move upwards and on the way back the resistance level will not hold - if you want a longer swingtrade, you should serach for support on a longer term timeframe (than a 3-minute-chart) - any comments ?
I will look back at my trading log and see if I would have done better in hindsight if I just placed my stop under the low/above the high of the day before the trade ...
@ddefina
Do you mean last 15-minute-bar of yesterday ?