Spydertrader's Jack Hershey Equities Journal

Discussion in 'Journals' started by Spydertrader, Sep 25, 2004.

Thread Status:
Not open for further replies.
  1. 2005-06-17, Friday - MCRI Update

    Price for MCRI blew right past my stop. Currently, holding in order to determine next course of action.

    - Spydertrader
     
    #1311     Jun 17, 2005
  2. 2005-06-17, Friday - MCRI Update

    Sold all shares of MCRI at the $22.00 USD price point. Still holding EXM.

    - Spydertrader
     
    #1312     Jun 17, 2005
  3. 2005-06-17, Friday - Update

    This morning, I monitored one list of stocks (3 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

    Dry Up Stocks

    EZPW TASR USG

    Our system generated two possible trade signals from the list of three Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.

    Dry Up Stocks Triggering Signal

    TASR USG

    Dry Up Stocks NOT Triggering Signal

    EZPW

    TASR did not show price improvement at time of signal generation (10:43 AM). In addition, MACD Histogram showed a negative return (-.0178). Also, The Stochastic Indicator fell outside desired levels (48.5288).

    USG also failed to show price improvement at time of signal generation (11:02 AM). The MACD Histogram showed a negative return (-.0529), and The Stochastic Indicator failed to achieve desired levels (18.0311).

    As a result, I took no action with respect to TASR or USG.

    I'll update the EXM & MCRI trades shortly.

    - Spydertrader
     
    #1313     Jun 17, 2005
  4. 2005-06-17, Stupid Mistake Update

    Failure to follow the rules of any system can often bite you square in the ass. Yesterday, I failed to follow the rules and held both MCRI and EXM beyond EOD, when clearly, neither equity had reached FRV by EOD. The result of my rookie mistake? I turned what would have been a $590 USD profit into a net break even day.

    Why would I do such a thing? Greed. I allowed my thought process to be influenced by the possibility of making back a significant portion of the recent losses, and as a result, allowed one winner to turn into a loser. While valid reasons do exist for choosing "when to break the rules" (such as adapting to a rapidly changing market dynamic), Greed is not among these valid reasons.

    Now, of course I will learn from this bitter lesson and move forward, but I post here in an effort to help someone else avoid the same stupid mistake I made. One must remain ever diligent to insure the decision making process is void of both Fear and Greed. Without an ongoing commitment to eliminate these two emotions from one's thinking, the door to error swings wide open. I have been reminded of this lesson today. Hopefully, you can learn from my example, rather than by giving your own profits back to the market.

    - Spydertrader
     
    #1314     Jun 17, 2005
  5. Thanks for the followup on your trading MCRI and EXM. The eod volume wasn't too far off. Perhaps you may want to sell 1/2 at eod when the confirmation or price action is near the cutoff (either abover OR below). Locks in a partial profit, yet allows the trade to run a bit if it behaves.

    Keep up the good work.
     
    #1315     Jun 17, 2005
  6. Hi Spyder,

    I'm a bit confused. For FRV calculation, do you use the lower band DU value or the average DU value, as given by the Wealth Lab scripts?

    TIA
     
    #1316     Jun 17, 2005
  7. The Wealth-Lab ChartScripts use Average DU Value to calculate First Rising Volume (FRV) and Peak Volume (PV) levels. I used those same results. We use the 'Low Band' of Dry Up Volume Range as an entry trigger only in an effort to capture an increased portion of the price movement. However, even if one decided to use actual volume (Wednesday) as the Dry Up Volume Value (for Thursday), neither EXM nor MCRI would have exceeded FRV levels by EOD.

    - Spydertrader
     
    #1317     Jun 17, 2005
  8. 2005-06-20, Monday - Lists

    Hershey Wealth-Lab Chartscript Culling Methodology
    Hershey Chartscript Scans / Qcharts Culling / Stocktables.com Sort

    Hot List

    CMT FORD MCRI

    Dry Up Stocks

    DCAI EZPW HANS JUPM MFLX TASR USG

    Hot List Stocks Scores

    CMT - 2
    FORD - 0
    MCRI - 0

    Dry Up Stocks Scores

    DCAI - 4
    EZPW - 5
    HANS - 0
    JUPM - 0
    MFLX - 0
    TASR - 2
    USG - 2

    Keep an Eye on These Stocks

    DCAI (Attached)

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=771649>
     
    #1318     Jun 18, 2005
  9. 2005-06-20, Final Universe - Update

    GDP IMAX SIGM SNDA XXIA

    The above list of five stocks have failed to maintain rank. I plan to remove these equities at the end of the month if they continue to fail to achieve a rank. USG, previously on this list, has recently reacquired its rank, and as a result, I have no plans for the removal of USG at this time.

    Good Trading Today.

    - Spydertrader
     
    #1319     Jun 20, 2005
  10. 2005-06-20, Monday - Update

    This morning, I monitored one list of stocks (7 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."

    Dry Up Stocks

    DCAI EZPW HANS JUPM MFLX TASR USG

    Our system generated three possible trade signals from the list of seven Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.

    Dry Up Stocks Triggering Signal

    HANS TASR USG

    Dry Up Stocks NOT Triggering Signal

    DCAI EZPW JUPM MFLX

    HANS did not show price improvement at time of signal generation (10:35 AM). In addition, MACD Histogram showed a negative return (-.3271). Also, The Stochastic fell outside desired levels (19.8616).

    USG did not show price improvement at time of signal generation (11:22 AM). In addition, MACD Histogram showed a negative return (-.3486). Also, The Stochastic fell outside desired levels (19.6513).

    TASR also failed to show price improvement at time of signal generation (11:26 AM). The MACD Histogram showed a negative return (-.0048), and The Stochastic Indicator failed to achieve desired levels (21.8117).

    As a result, I took no action with respect to HANS, TASR or USG.

    - Spydertrader
     
    #1320     Jun 20, 2005
Thread Status:
Not open for further replies.