Learning to read Price Action with P&F Charting

Discussion in 'Strategy Building' started by HolyGrail, Mar 22, 2008.

  1. Finally got my account transferred and my first trade was LSR.
    OK I couldn't stand it. I've been watching it go up and after pulling back this week because of the markets I thought I'd buy even tho it wasn't a good pnf signal at the time.
    All the pnf studying and my first real buy was a crappy signal, but we will see how it turns out.
     
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    #1181     Sep 17, 2008
  2. yayt

    yayt

    At what price did you buy LSR?

    For me, one of the biggest hurdles was getting over the emotions of the trade. Take it for what it's worth, but I suggest you set up a hard stop and a trailing stop, and possibly don't look at it so much - you are swing trading for a reason.

    EDIT:
    Sorry, I thought you were watching it go up and down after buying it.
    But another part of the emotion is codifying your rules and only entering and exiting if it fits the rules (and always keeping in mind new opportunities to add to the rules if it's something you see recurring)

    My .02
     
    #1182     Sep 17, 2008
  3. 34.82

    Not really sure one wants to buy any stocks at the moment, since everything is tanking so bad. Should be good buys once it settles down tho.
    Would like to short a few since that is what I did a lot of in my papertrading, but thought I'd better study the pitfalls of shorting a little better before I go there.
    Since the rest of the account is now in cash ( I had to divest myself of a couple broker bought stocks once it finished transferring, at a loss) , I can now take my time, look over the charts good.
    thanks for the advice.

    When are you gonna start your journal??
     
    #1183     Sep 17, 2008
  4. yayt

    yayt

    I actually forgot about it - I'll start it tomorrow. I will be day trading though, but I hope it helps you (and anyone else) and maybe I will get something out of it also :)
     
    #1184     Sep 17, 2008
  5. Any opinions? I put in an order to short @71.35
     
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    #1185     Sep 18, 2008
  6. yayt

    yayt

    According to close only chart, if you wanted to enter at a breakdown you would've entered as soon as it passed 76. You entered a bit late but you definitely have momentum going for you.
     
    #1186     Sep 18, 2008
  7. Since I'm using High/Low for my scan, I'm going to save a picture of both H/L and Close Only on my trades and see if Close Only would have warned me about a bad trade or too late in. For now, I'm just verifying Close Only doesn't have it going the other way.
    If it goes the right way, I'm probably only going to ride it down a few dollars. Don't think it will get to the support line on Close Only
     
    #1187     Sep 18, 2008
  8. yayt

    yayt

    That sounds good
     
    #1188     Sep 18, 2008
  9. yayt

    yayt

    Didn't trade today, too volatile for my .20 box size - I am not yet used to different box sizes, but it has opened my eyes towards that idea, especially if I want to take part in more volatile markets.

    But as it is, I am fine with what .20/1 has been giving me thus far.

    At least you got to ride the wave today, LSR at 36 last I saw :)
    And your short tech isn't doing so badly either, considering.
     
    #1189     Sep 18, 2008
  10. Wound up shorting TECH at 71.92 at the open so turned out ok. Peeked in half hour before close and saw it was going up pretty fast. Good thing my account was new and under 25000 so TOS won't let me day trade yet or I would have bailed. Which would have defeated the whole purpose of this exercise.
     
    #1190     Sep 18, 2008