It might be there but I could not see it. Take a look at TEVA see if you can sense anything unusual before the fact.
Why Is The Obvious Not So Obvious?
- Thread starter nysestocks
- Start date
At least your are honest..and for that you have my respect and good wishes going forward.
Waste of time..but..anyone who was long TEVA before that gap down really doesn't have the first clue about reading charts..this is one instance where "looking back" can really catch you out!
There were a few among us here at ET that actually traded TEVA and no they did not short the stock. What were the indicators or charts that said to stay out when it closed at $27.86 on May 30th and then started moving up?
In relation to recent move down..if my memory is correct.. you had a previous gap down that was not filled..the size of the gap and following trading range is important..it is all about buyers and sellers.. remember..when you look at charts you must see more than just lines..this is one reason why TA can cost you loads of money..stops you focusing on what you need to focus on.
I did not look..but options pricing might have also given some clue as to what market makers were anticipating..and they know more about buyers and sellers than most
Excellent suggestion. I am certainly going to take a look at near term options OI and volume of trades a few days prior to earning to see if there were unusual activities. Certainly if there were a lot of puts and calls traded, that would affect the stock price, if so that would be a clue to watch out for big gaps either up or down. I learned that from your prior posts.I did not look..but options pricing might have also given some clue as to what market makers were anticipating..and they know more about buyers and sellers than most
Excellent suggestion. I am certainly going to take a look at near term options OI and volume of trades a few days prior to earning to see if there were unusual activities. Certainly if there were a lot of puts and calls traded, that would affect the stock price, if so that would be a clue to watch out for big gaps either up or down. I learned that from your prior posts.
Be very careful as a little bit of knowledge can be a very dangerous thing!
When you work out the expected move of a stock..or index..it is just a calculation that gives you an expected range based on option pricing model/s..it is in no way a guarantee that price will stay within the said range!
The only guarantee in trading is that you will lose money..so..it goes without saying that your main priority should be focused on not losing too much money!
The less you lose..the more you trade..the better you are getting at understanding what making money is really all about..if you do not control your losses..then no matter what you try..or what you do..you will never become a consistent profitable trader..which very few do!
Trading can be simple..or complicated..it all depends on the person who is giving it a go..complication leads to confusion..leads to many losing trades..leads to emotional stress and procrastination..which..will ruin your hard efforts!
Simplicity leads to clarity..leads to understanding..leads to less losing trades..leads to positive emotions..leads to less procrastination..which..rewards your hard efforts!
Way too many experts out there..which..listening to will do nothing for you but cause you to go round in circles and get nowhere..just have a good chat with yourself..as you really need no other person to help you make money trading..it really is up to the individual..but as most are too lazy to do the hard work required..and want the "easy money"..it is no wonder that most who try..fail dismally!!!
I am going back to my basic trading method:
I took a long position in TEVA yesterday after I re-analysed their financials and took another look at their products.
Until I can find something that gives me consistency, I have to stay with what I know. But I don't think I can day trade with that.
Yep, I know something about this... I just went through this recently. But while it has been extremely painful, now that the big loss is 6 feet under, I am glad it happened as this was a third time over lesson that I really needed.
Making money trading? Easy enough once you figure few things out. The real hard part is keeping them and avoid getting dragged into a pit too deep to climb back.
Now, I know with my gut what my brain already knew.
We all make mistakes..and I still make them..but..I have learned that a small mistake is a sure sign of a big mistake if I don't walk away..so..I just stop and walk away.. plain and simple
Never pay too much heed to text books or Internet talk..for..the only person who knows best for you..is you!
It is far better to walk away and keep your money..until such time as your head is clear and you are not entertaining silly thoughts about things that do not matter.
If you can not follow a simple process..then having a detailed plan is really of no use..and will just compound your issues and lead to the vicious circle of losing money.
Successful trading really is mostly about your mental state and understanding..for..how can it be any other way..ignore the sales hype and idiots who speak as if they know everything.. for..with trading..less is really more..many years ago I slated someone who said this to me on some forum.. today I know better..and can say that the person was 1000% right..but back then I was an "expert" at everything I read and spoke about..what a load of bollox