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Weinstein Trading and Fading
- Thread starter Robert Weinstein
- Start date
*** I intend to do Trades tomorrow ***
This post will serve as my first call in this journal for a swing trade.
I scale into and out of almost all my trades including day trades.
I normally allow for 25% of a trades risk capital to be used per entry into a trade.
I average in a short swing by fading the buying of the stock moving higher. (when going long this is called dollar cost averaging)*
I think:
BP is shortable above 72.20
CVX is shortable above 95.50
SYNA shortable above 37
I will also be looking at options to see if there is value in writing or buying options for this trade as well. My profit target will be 5-7%
*While lots of Investment advisor's talk about the merits of dollar cost averaging(mostly to CYA IMHO) I don't agree its a good idea for investing. I do think it can work well if used properly in trading.
This post will serve as my first call in this journal for a swing trade.
I scale into and out of almost all my trades including day trades.
I normally allow for 25% of a trades risk capital to be used per entry into a trade.
I average in a short swing by fading the buying of the stock moving higher. (when going long this is called dollar cost averaging)*
I think:
BP is shortable above 72.20
CVX is shortable above 95.50
SYNA shortable above 37
I will also be looking at options to see if there is value in writing or buying options for this trade as well. My profit target will be 5-7%
*While lots of Investment advisor's talk about the merits of dollar cost averaging(mostly to CYA IMHO) I don't agree its a good idea for investing. I do think it can work well if used properly in trading.
Quote from 1Reason:
Hello SG20,
Thanks for taking the time to read the start of my journal.
I am unsure without any trades entered in you came to the conclusion I don't know what a trend is but hopefully I will be adding some value with this journal.
My goal is to identify the start of the trend before it actually begins by finding the end of the opposite trend.
With people like Richard Dennis and Willian O'neil and the likes I feel I do know what a trend can do for your account.
Thanks for the well wishes and I wish you the very best in trading
I thought the same thing as SG20 when reading your initial post. If you ride V from say $65 to it's current level of $88, what difference does the spread or ECN fee make? Say you buy 2000 shares of V, that's $10 commission, and say the spread is usually 3c and you are paying it, that is another $60... I don't see how $70 is relevent on $46K profit?
MIR earnings report came out today and while I didn't see the jump that would have finished off the trend in a great way
I am happy that its still set up to short.
First level shorts placed.
Shorted MIR @ 40.08 and covered with June 37.50 puts @ .65
I am happy that its still set up to short.
First level shorts placed.
Shorted MIR @ 40.08 and covered with June 37.50 puts @ .65
3 CVX was shorted @ 96.85 covered with 3 Jun 90 puts
S:Brenton
I have an ask of 37.11 SYNA
S:Brenton
I have an ask of 37.11 SYNA
Quote from trend_guy:
I thought the same thing as SG20 when reading your initial post. If you ride V from say $65 to it's current level of $88, what difference does the spread or ECN fee make? Say you buy 2000 shares of V, that's $10 commission, and say the spread is usually 3c and you are paying it, that is another $60... I don't see how $70 is relevent on $46K profit?
Hello,
Excellent question. My first post giving my theory of trading is not totally exhaustive and writing a book was not my goal.
I will try to answer you in two parts.
The "basic" reason for wanting to capture a trend before or at the start is that you can get more of the trend. Perhaps even more important it allows for scale and less slippage. If the trend has already started then you must fight with others for favorable pricing and if you are trading size this can be a huge issue.
with my viewpoint I trade against the trend in what I hope is the end of the trend and about to be the start of the new trend which allows for better pricing of the entry and larger assets can move in without causing the market to move against you.
Yes it also can lower your commissions which I guess is up to you if that matters or not but I think we both agree its the smaller factor or perhaps a non factor that just gives "icing on the cake".
Also lets talk about the $70 for a moment.
In general people that are buying a large ticket item, say $7500 worth of stock and they go to a broker and they are told that the commission is $170 will not leave and walk 10 blocks to the other broker who will only charge them $100 for the same thing.
On the other hand the SAME people when going to dinner will walk the same 10 blocks so that they can save $70 in parking fees when one parking lot charges $75 to park and the other only charges $5. Same amount of money saved for doing the same thing. In one case the money has more value and in the other it has less. I would argue that $70 in not relevant to the profit regardless of the amount and for me $70 is the same either way and if I can save it by doing nothing different than what I would do than great.
I wish you the very best in your trades
Respectfully,
Bob
short SYNA 37.11
S:Brenton
S:Brenton
Short 2 BP @ 72.59
S:Brenton
S:Brenton