The concept for a long trade just occurred. If you have a minute, take a look at the S&P chart. At 11:48 price came down to 985.25. Then moved up and formed a double bottom at 12:01. Both the MACD and the Stochastic make higher lows. I entered the trade at 12:05 at 986.50. SL -2 and TP +2 @ 986.50. Price moved up and at 12:29 my target was hit. This is the basic trade. It worked this time thank goodness. I try to take this trade in the direction of the trend which I am calling up at this point. You have to be more careful with shorts on a day like today.
I am in another trade now. Same type. At 13:22 price made antoher double bottom. Stochatic and MACD made lower highs. Entered at 13:25 at 989.50 SL -2 and TP +2 at 991.50. Since this would be a new high, if it works, I may try to trail with an incremental stop. We'll see how it works. If price breaks thru 990.50 it will likely run up quickly.
I don't care for that one as much. Market is too quiet for me right now. (mid-day trading is tough without much force or conviction in the market)
You were right. Stopped out. In hindsight, there was not enough room at the top to pick up 2 points. Interesting comment about the timing. I generally enter whenever I get a signal after the opening zig zags. Usually I look to trade after 10:00. Do you think it may help me to stay out of the market during certain hours that are traditionally slow? Any feedback appreciated.
I've been using this method for over a year now, on and off, and I find it excellent: relatively easy to understand and quite profitable if you do it correctly, ie, if you interject the right amount of real-time (somewhat subjective) adjusting that they suggest. I wouldn't really call it a begginer's method, but, starting next week (schools close) I plan to teach it to my smart 14 year old son, and see how he takes to it. OK, now, shoot
I'm not familiar with that exact method. But, it similar to one of my daytrading strategies. And with the proper discipline you will have an edge. (but then again, you can probably say that with any strategy)
I did not pay to become a member of Traders Intl. Just wanted to do things myself. I am kind of hardheaded when it comes to that. I have done okay so far. I think the biggest thing I like about the system I have developed is the simplicity. I am still fine tuning the "subjectiveness". That's really what I hoped to do hear at ET with the input of some of you more experienced traders. I might start a separate thread and talk about my trades and strategies so that people don't get confused into thinking I am a TIMES person. Hopefully, it will bring some value to everybody. Yannis - Good luck with your son. Great idea. Will take him much farther in life than school. I have a 14 year old son, he only wants to skateboard.