Tough, caught in losing trend

Discussion in 'Professional Trading' started by innovest_11, Oct 26, 2012.

  1. Got caught in whipsawed losing trades, been a month, especially aapl, trying hard not to trade it, any recommendations to lose focus on 1 stock, how to get rid of this stock off my mind? Because I have profit from it from a number of trades this year, but now it seems that it is getting it back from me...

    How to rid it off my trades?
  2. Given that this is ET, I will probably get yelled down. But here's my advice to you: don't trade the biggest, most popular names. They're a magnet for everyone, which means they also tend to be the most efficient. Unless you're HFT, have superior fundamental information, or have some other kind of quantifiable edge, stay away from the AAPL, GOOG, SPY, DIA, etc. type names.

    Try to find your edge in areas where the big boys don't have as much of a lockdown on the market.
  3. Thanks for your advice, you are right, somehow got sucked into the aapl craze, now trying my best to get out of it, trying not to read anymore info abt aapl, trying to go back to my original path, too attached to a particular stock lead to my losses
  4. Just make sure the trend isn't you repeating the same mistakes over and over. Those are the worst trends for certain.
  5. in my eye, AAPL option is the best.

    to avoid loss further more, stop trading totally. stop trading any symbol. in reality any symbol produces similar volatility.

    not the symbol problem, it is the market behavior pattern. AAPL option actually can be easily traded, but most time you need put into day trading frame, not overnight swing trading.

    since AAPL swings big daily. that is why it is hard to do overnight swing. to me, day trade AAPL option is nerve break work, so I choose some particular market pattern to trade, like trending market, I will avoid some days, just trade those critical price levels, such as 50days ema crossing, fading trending pullback/consoildation. my special takes is like NFLX friday's trend (either up or down). very classical, high odd.

    AAPL is in down trend in big timeframe. a bear market is harder than a bull market to trade. it slided quickly, then sharp bounce to fool you the market is rallying, you need strong will to fade those sharp moves. in a bull market, normally, the move is slowly up, the pullback is minor, you can not fade the pullback, since the pullback is not sharp down, it is gradual, and it takes days or weeks, so it will wear you down easily, if not patient enough, you can not catch the gush up.

    I hate bull market, and love bear market. since in a bear market, the only thing you need is strong nerve, fade and hold through those sharp quick rallies need steel nerve, then cover them quick. after a while, when everyone knows it is a bear market, the market runs similar like a bull market. there is no taste to trade. those moments need be avoided!

    do not trade every day when market conditions does not worrant trading.

    do not try to chase loss for profit. avoid doing trades just for the sake to stop losing. that is impossible. only when you see clear big picture, line your trade in that picture, you will start to win again.
  6. aceinc


    The only trade that can hurt you is the one that matters too much. If you properly position size and maintain the discipline of exiting at a predetermined stop, you will live to trade another day.

    APPL peaked on September 21 as did many issues. I suspect that Insiders were liquidating and selling short at that level. AAPL traded (2) very large blocks @ $702.56 at the open. This was the terminal phase of the rally. APPL never trades multi-million share blocks without profound price consequences.
  7. What were those two large block sizes?
  8. aceinc



    You are in an exclusive club. Out of over 200,000 people that have read my articles, you are only the third person to ask that question. Congrats you win not only the multi speed blender but the toaster oven as well.

    21-Sep-12 6:30:00 NMS $702.56 2,091,817
    21-Sep-12 6:30:00 NMS $702.56 2,091,817

    I have never seen an instance where apple does not move at least 75 points up or down after blocks this large.

    There were additional blocks in the 500k - 900k range but the ones highlighted above were by far the most significant.

    That' it for now ... have a great trade.