Wow, a lot of huge bulk trades off the opening today. A 120k share trade on ISE single-handedly pushed it over LBDU. TFSM also had a 120k share trade on the opening (and 10k pre-market, and a 20k share trade just off the open). NEU opened and had a 49k share trade shortly after. Is this just quad witching craziness? I'm reluctant to act based on early volume figures because of this. Does anyone have any experience with this sort of think and can hazard a guess as to what sort of follow-up we can expect?
Entered into NEU as I missed the block trade at entry foible mentioned. Stopped out at a 2% loss. Entered JOBS, and it hit FRV, so I'll stay in for Monday's action. Sold my position in XING for a 5% gain when I saw some difficulty on the upside. I hope everyone elses week went well. And to end a good week: <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1201890>
Hello, I'm a newcomer to the Hershey way, and am thankful I found this thread. It seems to contain a lot of information without much of the flaming found on other threads. One question I have come up with to better understand arises from the following website: http://www.networknt.com/wiki/index.php?title=Final_Universe What are these stocks? Yes, I understand what the final universe IS...just not the date. That is, is the date of the links found for the following day (9/14 list would be used for 9/15) or are they for THAT day (9/14 would be used for 9/14). I've played with the Hershey Trader 1.0 software as well, but haven't been able to get past the same universe of stocks day after day, so not sure what I am doing wrong there. Spyder and others...thanks for the very informative thread and for sharing your knowledge and experiences. JimBob
JimBob, You might want to take a look at Spyders earlier response with respect to this site. I'd suggest sticking with Journal I and II. They have all the info you need. Cheers
I am new to here. I read the first 150 pages of journal I, and then jumped to the last few pages of journal II since I cannot wait to trade. I have a few practical questions. 1. When we see volume reach DU at 11:00am, the price usually also rise 4-5% corespondingly. How should we handel this situation. For >5% prise rise or >10% prise rise, should we chase? Or should we only chase on those Bruno-R-Buy stocks? When we purchase after the price rising coresponding FRV, say 3%, should one exit at reduced gain rate, e.g. 20%-3% = 17%? The example is XING. I jumped in at FRV at 11:00am, but exit today with about 5% gain when I felt its weakness. 2. When we see price reached FRV BEFORE 11:00am and meet other conditions, should we place market order right away, or should we wait till around 11:00 am? In other word, will the Wall Street push the price down a little bit before the enter? One example is ISE for today. As I "projected" it will reach DU volume at 11:00, I jumped in near the first peak. It is a great jounal. I learned a lot from it. Thanks to Spydertrader and every contributors here.
Hi Ulmer, I'm quote new at all of this also - so apologies in advance if I get something wrong here. The answers to the questions below are my own interpretation after reading both journals, so first and foremost, I would recommend reading both of them fully, before you start trading. Patience is, I have found, one of the most important aspects of trading. Both of these journals are littered with this fact. Spydertrader tells us he is very wary of gaps from the open, and mostly avoids all opening gaps beyond 5%. However prices will rise from the open as a result of increased volume, as shown in the Jokari window by Jack Hershey. For Stochastics to extend to the trigger point of 80, price improvement must take place. For me, I don't "chase" price. I simply execute based on the entry criteria specified many times by Spydertrader. Drawing channels has been shown to help in the decision making process, such that one can identify overhead resistance areas, and know whether price has travelled too far to provide a good entry point. The pro-rata volume thresholds are LBDU by 10;30am, DU by 10.30am or FRV by EOD The two journals contain information on a number of setups. Bruno-R is not a replacement for the original methodology in journal I. I had the same misconception as you, before I fully read both journals. It is ideally meant for those traders who have correctly internalised the initial methodology. Bruno-R has the potential for increased returns, but with that comes higher risk (which is mitigated by the improved capabilities of the trader through the better understanding of Mr Hershey's methods) Once the entry criteria has been met, entry takes place, irrespective of the time of day. I use market orders, many people in this journal use both market and limit orders. There are advantages and disadvantages to both. I hope I have explained things clearly for you. I cannot overestimate the importance in reading both of the journals. It will serve you far more than any short explanation to your learning gaps such as this.
Apologies for my error below: It should read: The pro-rata volume thresholds are LBDU by 10.30am, DU by 11.30am or FRV by EOD
I'm also new here. Ulmer I laughed at your post because I am in the exact same boat- I am on about page 170 of journal 1 (and have read the last 30 or so pages of journal 2) and am also looking forward to 'getting my feet wet'. To be honest I can tell you I am not going to get through the remaining 700+ pages before doing any trades. I will start before then, but will play it very conservative while I continue reading and learning. cipherscribe I appreciated reading through your response to Ulmer as it also helped me. I have a question and sorry if it seems nitpicky but as I am a beginner I would like to make sure I have my facts straight. I'm pretty sure you meant LBDU by 10:30 and DU by 11:00- however from the last page of Journal 1 where Spyder summarizes the system, he says (bolding mine): I have been flip-flopping on whether 'low band threshold' is in fact LBDU, or just plain old DU. Intuitively it seems like it should be DU, but the 'low band' part is the 'LB' of 'LBDU', so I'm not sure. I also thought I read that whatever you use to calculate Dry Up of the previous day is what you should use as your indicator of DU before 11:00, so if we know which value the Dry Up Scan in Wealth Labs uses, we should have our answer that way. I have other questions I will be asking in the coming days and am glad there are still so many helpful people contributing to the thread. Least of whom Spyder who to me reads like the wise old monk on top of a mountain temple, still patiently dispensing advice to all the young whippersnappers climbing up the slope...
Ho ho cipher I see you posted a reply while I was crafting my last post. Well that helps clear things up. Thanks