Rick, You are right. I came up with that method because a lot of new traders would see price move 1.5 points and reverse on them so they were taking bigger losses than they wanted to. So this is a way where they can make smaller profit but more consistantly. I look at other things while I have a trade going that tell me when to bail most times but I can't type a pst fast enough for others to benefit from. So that is where this method came from. Gary
Yes your information is valuable to me as well. And I thank you for that. I do agree with your longer timeframe trades. I have been riding the Q's up since early July and loving it. Day trading is only for steak money. My rent money and retirement comes from my company. My long term trades however they are how I have built up my capital. I had never even tried to day trade until this year and it didn't take long to realize how much time it takes to do.
Hey Gary, Yeah, I was starting to get the idea that there may be some discretionary element in this part of the plan. So far I've been moving it pretty mechanically. I find myself cringing, because of the seeming high probablitity that this stop will be hit. I will work at developing a feel for putting this stop in place.
I am not looking for a reversal, just a pullback towards 20ma. There are quite a few things pointing to that from my point of view. S&P being close to the top of the daily channel should favour price not making a run away from its 20ma. As I said, not really looking for a reversal. Very funny BB EDIT: I meant to say near the top of a monthly channel, but also helped by the fact of hitting top of daily.
I thought so. I can buy that theory as well. I wish you well on it. I think we are about ready for a pullback on everything right now.
I edited previous post with Monthly channel, as it's more important than daily to me right now. Looking at past oscillations, price does not like to be taken away too far away from 20 ma when already at either top or bottom of channel.