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uexkuell
 

Registered: May 2006
Posts: 292

 

09-20-12 10:05 AM


Quote from danielc1:

You are over thinking it... Just use two averages to determine to buy a pullback or not...



Care to explain how you interpret these averages?

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danielc1
 

Registered: Aug 2002
Posts: 245

 

09-20-12 10:53 AM


Quote from uexkuell:

Care to explain how you interpret these averages?



I use them for two things:
1) When the shorter average is above the longer one we are in a buying mode and I look for pullbacks to buy. And vice versa for shorts.
2) I use them as a kind of support tool for price. When I see a pullback, I would like to see the pullback to come close to the shorter average or even 'touch' the average. When it is not close to the average, I do not like the pullback.

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trader198
 

Registered: Mar 2010
Posts: 1217

 

09-20-12 12:03 PM

I have so many examples in my mind, it is hard for me to reverse my view. I feel I am sturborn.

several weeks ago, I was thinking to buy FSLR 27 calls (FSLR after earning, thrusted almost doubled,obviuosly in the chart it is going up). then one day it dropped 5+points, almost removed all gains after the earning runup, all puts of 25/24/23/22 printed more than 10 folds gain.

those days, everyone here may notice USO. before the drop, the trend is going up, the chart seems to say we are going higher. but it suddenly removed all the runup in months.

the worst is I have other examples, just the opposite. recently I bought some ZLC puts, when it dropped to 5.4 (this is a puulback, late confirmed it), I bought puts of 5 of course just 0.05 cents. I thought it will drop to my EMA. but it refused. my ZLC trade is a loser.

I did a ZLC trade since I did buy some puts of PPHM, when it ranup to 3, I bought some 2.5 put , late I covered it at my EMA 1.8, that is a winner. it doubled+. this PPHM trade encouraged me about ZLC trade.

those things made me feel at loss what to do. I know it is just odd. but still want to improve the odd, do not want to bet blindly. I easily let my holding control what I look and think.

Pullback/reversal really hard to disgingusih, if dip shallow, I kind of think it is a pullback (several daily bars, a little tilt down). if dip hard, I kind of think it is a reversal, often so quick, so hard to catch.

I was stuck with CDE/EGO puts this week, that is why I am early and write posts. GLD/AGQ everynight dropped, then somehow in the opening it jumped back. CDE/EGO puts of 9/21 this week, that made me nervous.



this night silver/gold all dropped good amount, my expectation is silver to 33under, gold to 1750under.

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danielc1
 

Registered: Aug 2002
Posts: 245

 

09-20-12 12:46 PM

Do you have a clear and writen trading plan? Setup, trigger and exits?
If you do have such a plan, did you confirm for yourself that it works in realtime?
If you confirm that you tradingplan works, did you make a profile of your believes about the market and do you know yourself enough to understand that this is something you can do? Or are you going to doubt everytime you see a setup and a signal to act? If that is the case, you need to work on your tradingplan and what you believe about yourself, the market, and so on...

There is nothing wrong with having a loss, as long you follow your writen tradeplan.

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NoDoji
 

Registered: May 2008
Posts: 8107

 

09-20-12 01:38 PM


Quote from trader198:

those days, everyone here may notice USO. before the drop, the trend is going up, the chart seems to say we are going higher. but it suddenly removed all the runup in months.



Since I trade oil and have the daily chart handy, I'll tell you why that last initial "pullback" (9/17) raised a big warning flag for the bulls: Price erased 5 days' gains in a single day. In a trend, you want to see an orderly pullback, not a single price bar that tells you everyone wants to take profits at once. So you then wait for more clarity to see who's in control. There hasn't been a trend continuation signal since.


Quote from trader198:

I thought it will drop...

...this PPHM trade encouraged me about ZLC trade.

...those things made me feel at loss what to do. I know it is just odd. but still want to improve the odd, do not want to bet blindly. I easily let my holding control what I look and think.

...that made me nervous.

...my expectation is...



When you trade your thoughts and emotions, you're betting blindly.

To improve the odds, compile stats and create a plan that places the odds in your favor. Then you won't have to think or feel; you'll simply recognize and react.

If you haven't read Trading in the Zone, read it several times.

If you've read it and don't like it, you've a long uphill climb ahead of you.

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