wow. I talked to him briefly a couple of times. He told me to forget about being a floor trader. Said I wouldn't have access to order flow unless my uncle was there. Always thought I'd go back and work with him. Yeah he was good.
That's the guy who said he didn't think there was anything wrong with the "Pump and Dump" cause that's what Wall Street does and nobody sees anything wrong with it.
Handle, I am using a 40 period EMA on all my charts. So in the case of NXPI what initially drew me to the stock was the monthly pullback to this EMA after a strong run up. I see RN’s point that on the weekly and daily the trend is still clearly down and there is plenty of resistance overhead. I am coming to conclude based on your and RN’s responses that a much higher probability way of trading this would be to wait for some of this overhead resistance to clear in the form of a breakout, i.e. have confirmation of resumption of the uptrend. Best would be then to wait for a pullback to scare out NEWBs and then go long above the pullback. However, often the breakout doesn’t pull back much and for these types of pullbacks its been my experience that a fixed target is more profitable. With the current trade where I’ve anticipated the low, the risk is higher but I plan to only take half my profits at a fixed target and let half run by allowing my trailing stop take me or other adverse price behavior so that my overall reward would be compensate for the higher risk. Whether it is better to anticipate or wait for confirmation is an interesting trading question. For most of my trades I usually wait for some kind of price confirmation that the trade is going in my intended direction. Sometimes, if there are multiple factors for taking the trade before such confirmation I will do so, but generally then let half of the position run.
Well I reviewed about 50 charts tonight and did not see anything that I felt confident trading. I believe strongly in waiting for setups that i feel confident in and avoiding overtrading. Regarding outstanding trades, no adjustments have been made. In addition I spent an hour doing quality paper trading on the GBPCHF crossrate. This crossrate was tougher to trade than the majors for me because there was much more choppy price behaviour and whipsaws. I have more technical work to do.