chiefraven, There are still people here trading the basic method. I do. What I found is that everything is taken care of for you up until and possibly including the time of the purchase. After the purchase is where discretion comes into play. Personally I belive there is a lot of discretion at the time of the buy entry as well, only if you choose to get in earlier around market open vs waiting for the designated time. What I have found so far is that there are definitely better entries on the daily watchlist stocks looking at the 5 min chart ONLY if the chart has a nice filled out appearance similar to a daily index chart. If you see a lot of close only bars and a lot of up and down chop bars that have little mini gaps I would not consider looking at the 5 min at all. Also, after examining close to 330 charts, I've found that some follow the rules more than others. As a beginner focus on those. Of all the long list of stocks you are examining, have you really looked at the daily and the 30 min on all of them? Can you really say that every single one of them made sense to you? When I started paying attention to the ones that made sense, things took off in the right direction. Over the weekend I spent several hours modeling a simple indicator that everyone knows using 5 min bar data on roughly 30 to 40 of our universe stocks. After roughly 8 hours of number crunching, when I took a look at the stats, some stocks had phenomenal charts. You couldn't ask for a better representation of buys and sells. I've decided not to waste any time on stocks that don't make sense. If my model can't make sense of it after 8 hours, how can I? In conclusion, rank the DU stocks in order of the ones that make sense based on your current level of knowledge and understanding. Based on the entry criteria detailed in this journal, buy equal amounts of the 2 or 3 top ones on your list. End of story. Forget about the other ones. Also, I have a different opinion on paper trading, but that is my personal opinion. There is a huge difference between the price you gave yourself when you paper traded and the price you'll get in the real world. When I was trying to get out of GIGM recently during the decline, there was a 10 cent difference between my first exit and my last exit on 1500 shares. Yeah, I know, someone was riding me down, but I didn't care, as it was I was lucky to exit with some of my profit intact.
Some excellent comments Johnpinochet! I've had this discussion in the past with Spyder, Jack and others regarding papertrading. As Spyder pointed out in our discussion, simulating is about one thing and one thing only - practicing for perfect execution. As I pointed out, the military uses simulation all the time in their exercises. There is a benefit to paper trading, but it's not in keeping Monopoly money score Paper trade with the intent of identifying your entries, holds, and exits, and then executing the appropriate action without hesitation. When you can do this in such a way that it's second nature, then it's time to move to real money. Of course, YMMV. -Au
FYI with CCRT chart posted above. They have an Earnings Call this morning. Probably going to see the stock tank if they don't keep the big boys happy on that call. - Spydertrader
thanks for all the advices guys. eventhough i am just beginning to test this method. i do feel like i have a pretty good understanding of the basic concepts, and yeah i know what you mean about papertrading.. i used to tape read the nyse stocks and scalp using large sizes so i know very well about the spread and the price you sometime can get filled at. look at my BITS go !!!!, same with HWCC! you guys might want to take a look at ALY as well for a bruno play. it might be making a run. i'm still waiting for more evidence on this one.
GRRF's volume is only at 20,538 right now as i type this message.. and according to wealthlab's calculation: Upper Band: 127,898 Average DU: 85,345 Lower Band: 42,792 it hasn't even reached lower band.... just a heads up i thought about nvec as a bruno trade, but dont like it as much... especially now.. inin gapped down a lot yesterday and it dropped outside of the downward channel.... but it could very well retrace back into the channel.... sometimes when there's a gap, stock tends to retrace 1/3 to 1/2 way back to where they gapped from. just my 2cents.... i stayed out of this one as well i'm currently monitoring ALY and SIM as my possible bruno plays. i'm also in XING from 17.85 all paper traded wish i was using real money hehe
Still holding XING. On my work execution platform, I have the stock's volume at 1,231,668, which is greater than FRV. However, on Esignal, I have volume at 1,203,632, which is less than FRV. I hate conflicting signals. I decided to hold the position overnight. - Huskydog