The main thing to remember is this. A chart is a chart is a chart. Day trading charts react the same as swing trading and long term trend trading charts only in a different time period. I treat them all the same only I get to react at a slower pace with swing trading and trend trading. I would rather make dollars than cents on my trades. Just my honest opinion.
See how I got stopped out of trade 2. That long shadow!!!. 2 questions: 1) Why does this happen?. The reason I'm asking is because I heard it was the input of HFT (excuse my naivety) 2) Any strategies to handle this? I am working on my A.D.D., as we speak. Generally, I am calm natured. My abruptness does not arise from the excitement of trading, but from the "i HAVE TO succeed!" factor. Amen to that!
I can't seem to see the images, so makes it a little difficult to make sense out of. However, I really want to understand how you set your targets. Can you PM me the pics? Thanks.
This has happened long b/4 HFT. I dont know if HFt has made it worse It has to do more with "shaking out weak hands" I think. Once a stock makes a move, it sometimes bounces around (creates fakes).. Unfortunately, I dont think there is a way to safely avoid this.. One method is to let the bar CLOSE, then act on it.. However, I am not sure if this will do any good, b/c I am sure plenty of times, it would close down further, and continue to move down farther eating more of your profits.. So to answer your question, I dont know.. But even then it was still a good trade, even with the fake out.. That is b/c the entry was good! Now, I will advise, when you enter look to see the next level of resistance (for longs).. Often it will test this.. Make sure it is far enough away from entry that it justifies taking the trade vs a logical place you are putting your stop.. In other words look at it as risk:reward... Your stop should have been placed beneath the channel for trade #2.. That means if you are playing a 2:1 gain/loss ratio, the next logical level of resistance needs to be 2x the distance your stop is from entry, to justify taking the trade..... you and me both. Also. I am, not sure if you have seen this old thread, but its a great reaad for price-action trading it really explains the principles well. (Probably one of the best on ET) http://www.elitetrader.com/vb/showthread.php?s=&threadid=99283 It is very long, but worth it. At lot of it is reptitious, but it just shows how he consistantly makes money over time with the same basic principles... IF you want to skim through it just for his posts, it will save time, but I dont sugest skipping much of it..
As you can see, I can now post charts. Thanks to Joe (administrator). I was on the phone with him and discovered that we are from the same city!. We both have the same phone and have it for the same reason. The thought process was the same ("i was just thinking that", "me too"). Bizarre in a good way, but definitely bizarre!!!. What a small world, when he could have been anywhere over N.America!!!. Anway, thanks again Joe and hope to hook up for lunch sometime.
I like Dave Landry too I have more (free) videos, webinars, and articles on my site. I don't know if I'm allowed to mention the actual site name but it shouldn't be too hard to figure out. I also answer all emails. Cheers, Dave
Well if it aint Mr Mountain Dew himself. If it was my journal I would be happy that you not only mentioned your site but that you visited this journal. Yoo are one of the people that I have learned so much about swing trading from. Sam, this is a man that will help you get a great start to your trading career.
I get a sense that Sam here is good people and I like that. If you look at my posting history you will see that I have not posted very much in the past few years but I will keep monitoring Sam's journal and I hope to see him succeed in his journey. Good trading to all in 2011. I got a feeling that we can make some money in this market.