Should you or should you not chase?

Discussion in 'Trading' started by schizo, Jan 2, 2023.

  1. smallAxe

    smallAxe

    Sorry, I don't think I will be able to make trading decisions with that. Try this:

    My universe has only 3 stocks: A, B, and C. And for a year:

    - A +15% and closed at 200.
    - B +5% and closed at 100.
    - C -10% and closed at 50.

    Which stock am I chase?

    I will chase and buy A, no matter what the price. Why?

    Because as a momentum trader with a holding period of several weeks to months or even years, basically my decisions are based on the premise: what goes up (down), will keep going up (down). And the stock A, as measured by the percentage, has gained more than its peers.

    This means that stock A is said to have momentum. It doesn't matter if it's a pullback or support or reversal or breakout or whatever, I'll still buy stock A no matter what the price

    Then... "Bet your faith!", the old pamphlet said. I think the point is how much am I allowed to bet on stock A?

    But, I think that's another matter.
     
    #31     Jan 5, 2023
  2. tomkat22

    tomkat22

    I've never believed in chasing but I swear to God stocks like HKD today make me think about re-considering my attitude. This stupid thing is gonna single-handedly bring back meme stocks.
     
    #32     Jan 5, 2023
  3. easymon1

    easymon1

    Great example. What timeframe HKD chart are you looking at?
    Depending on when you noticed this rocketship, and your chops, there are ways.
    Those who undertake this type of thing, maybe consider downshifting your timeframe to look for a safe way in...
    In the context of a 1minute chart there's no chase, it's just a product with action that can be traded in a responsible fashion.

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    Last edited: Jan 5, 2023
    #33     Jan 5, 2023
    tomi01 likes this.
  4. tomkat22

    tomkat22

    What it did back in august spooked me so bad I've been afraid to touch it. But congrats to the guys who had big enough balls to play.
     
    #34     Jan 5, 2023
  5. easymon1

    easymon1

    How do guys find these things?
    Yeah if a guy is trading daily charts or 60m charts, see what you mean but...
    What looks dangerous about that 1m chart, TK?
    ...compared to this 'back in august' Daily. Back indeed, loll.
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    Last edited: Jan 5, 2023
    #35     Jan 5, 2023
  6. tomkat22

    tomkat22

    I'm primarily a swing trader and do a lot of shorting so incidents like what happened in august are kinda spooky. Lots of shorts got their faces ripped off on that deal. Possibly an account-ending event for a few of them,margin calls aplenty. Way too volatile for my taste.
     
    #36     Jan 5, 2023
  7. TheDawn

    TheDawn

    It all depends on what it can do in the future. If the stock can potentially go much higher/lower, chasing is just trying to get on the ride.
     
    #37     Jan 7, 2023
  8. schizo

    schizo

    That's exactly what you should have done on Friday. I betcha missed the move. :D
     
    #38     Jan 7, 2023
  9. TheDawn

    TheDawn

    Yes I did. I thought it was way too expensive and it's not the first time that something that's hyped up so much turned out to be a dud. Didn't want to start the new year with a loss. LOL Ah well, the year is still young. I have a whole year to make up for the lost opportunity. :)
     
    #39     Jan 8, 2023
  10. USDJPY

    USDJPY

    On the E-mini for example, assuming everyone has the same signal, does any one have any idea after a buy signal occurs how many points higher is it ok to chase?
     
    #40     Jan 8, 2023