Pullbacks / Bounces in the market

Discussion in 'Trading' started by kidPWRtrader, Jul 21, 2007.

  1. I trade almost solely with the trend when price bars pullback (to go long) or bounce (to go short).

    In the past 2 weeks there have been very little good setups. I have been getting stopped out a lot and for the first time in a few months havn't made bucks the last 2 weeks.

    Maybe I am just too used to a trending environment.

    None of the plays that I'm looking at fit my risk/reward criteria. I would day trade given the strong current of the market but the PDT rule kind of ruins this idea (I get stopped out quite frequently so this would not work at all).

    Wondering if anyone else is having trouble buying/selling into this volitile climate?
  2. I remember trading that way for about 20 years. I do not trade that way now.

    I recall my buy low / sell high method failing at the top of a bull market.

    I recall my buy low / sell high method showing profit at about the first half of a bull market.

    The performance of a method might reveal information about the general character of buying and selling.

    I prefer not to use the phrase "bull market" because it is vaguely defined but I suspect you know what I mean.
  3. Try dropping to a smaller timeframe. Several nice setups on 5 min chart yesterday.
  4. I do concur with that opinion. However, the PDT rule kinda dictates what I can and cannot do.

    I have been watching the Scientific Instruments (or whatever that industry is exactly) and the stocks lend themselves to some juicy setups, none of which I can use. Sure I may get lucky on a few and not get stopped out. But, I know my luck is about 75% when I am doing *great* so I expect to violate the rule once every week at around wednesday, if you catch my drift.
  5. Aha. FYI, I have not been live trading for a while this time around. I took a hiatus to get my discipline under control. Had a few good trades here and there when things were 100% (mainly some great ones in february) though and have been doing great on paper otherwise. The problem is then that I havnt been in the markets long enough to know what a true topping feels like. Like I said, made money in february going short and I made money (fake) trading the range the last month (selling stocks when we got to the top of the range in weak industries) and buying stocks at the bottom of the range (in strong industries).

    I started trading again about 2 weeks ago as I have said and it just so happened to coincide that right when I entered, the setups completely vanished. I have had 1 good setup in the last 2 weeks and 1 decent one. Lotta failures... much more than before and I have been extra selective and really keeping tight control reasons for entry.

    Yes I do know what you mean to an extent. My defintion of buy low though, is buy at the low of a range (near the all time high) on the break of another smaller time frame high. Different definition, same concept, of course.

    Also, I went through a big market scan today... 2000 + stocks and did find 5 stocks that I would consider buying any other time of the year and 5 other ones that are *decent* but nothing spectacular.

    I have no clue though whether I am grasping at straws here. I have never had to pick and choose like this before...
  6. Boo hoo hoo i've dome well so thats your problem
  7. The main, long-term trend is still up.
    But the market is choppy right now.

    Wait for confirmation that pullbacks have ended before going long.

    Support/resistance points aren't clear in choppy markets.
  8. So, it means Bull Market only we can make profits.. I want to stay long on some stocks.. How to handle the situation?? I loose my profits in front during a crash>>