Discussion in 'Trading' started by dg2000, Sep 19, 2001.
I have been saying it for years you must trade liquid stock the more liquid the better.
Wait for the trade to come to you.
Sit out of the market until you see a chart set-up that really gets you exited make sure you are trading in the direction of the market.
I trade very little but do intra-day trade. When I first started I overtraded and lost allot of capital. I then came back into the market 1/2 a year later and swore I would only play the best set-ups even if a had to stay out of the market for weeks.
Since then I have stuck buy it, definitely the best thing I have done.
Two things really stand out to me in your 1st post....
>i've been trading for about 2 years. i've made money overall, but lately i've just been going nowhere to slightly losing money.
>i know that isn't much but i had to stick to my plan and sell...
You are ahead of 80% of the world out there already. By staying alive through your 1st 6 months, then the first year, you prove that you are not falling prey to many of the gamble traps that wipe out so many would be traders.
Next, you sound like you have a clear structure for your trade management, and have the discipline to stick to the plan....Even if you just "know" the stock will go up tomorrow. Congrats, you have some of the key elements in place that many never can execute.
The flaw I see in the PSC trade is that you bought the stock after a significant price extension. The 18th was a wide range bar, and after a move like that, markets usually take a break and correct either through time or price. If I were following PSC, I'd be stalking the pullback, looking for 20sma and 40sma support on the daily chart ($23 area). This allows the selling pressure to be reduced, and lowers your risk for the next possible swing long.
Hang in there... This market has just been very cruel to the classic T/A setups. Rinse and repeats abound as the stock sets up, then takes out the stops under the swing lows before resuming the trend. The deeper timeframes have been more orderly, but it has been a challenge to pick out the best stop placement levels. Look for areas that are NOT classic T/A hide your stops in strange locations, and you will avoid most of the rinses. (intraday, 10 cents under prior swing lows, use arbitrary stops etc...)
Another thing that really helps when in a funk. Just back away from the market. Spend a week watching, you will be amazed at what your eyes will see when not involved with the trade.
Good luck and good trading
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