Trader in the works

Discussion in 'Journals' started by TheTyphoon, Aug 14, 2005.

  1. After much research-I've decided to jump into swing trading with $5 K. Although, a small amount I accept the realization i might lose it all. So for newbies like me these were my steps:
    1. Opened an account with Scottrade.
    2. Bought 300 shares of Flex at $ 13.50
    3. Shooting for $14.00 within 2-3 weeks.

    Analysis Approach:
    1. 22-EMA, Slow Stochastics, MACD-2 lines, Force Index, Market News and some fundamental research.
    2. I also look at volume in connection with price closing for entry and exit points.

    What is was telling me:
    After flex annouced its earnings people began to sell and volume increased, the trend dipped, then news of other contracts hit and price and volume increased. Currently price dipped at 13.29 however volume dipped which is normal market activity.

    Pro Traders-Let me know what i did wrong/right. I would appreciate if your steps in evaluating stocks were included with feedback.

    I will be adding more to my trading account based on two factors:
    1. If im successful with my initial steps.
    2. All my home renovations are complete.

    I'm treating this like a business and hopefully my emotions dont chart my course.

    Everyone, I welcome your help, guidance, comments and stock tips!! And if your ever in the Pacific Island areas-let me know.
  2. Well a couple things I can see are:

    1. You bought right smack dab in the middle of a consolidation range from 14.40 - 12.96

    Don't diddle in the middle

    2. You also BOUGHT with decliining momentum (macd)

    3. There was no structural support level to trade against and volume was increasing as the price was dropping from Aug 1st forward.

    Bad !

    Look a NVDA this is the kind of trade that will make you $$$$$ most of the time!

    Trying to catch pullbacks is tough and should be left till you have more experience imo.

    Good trading to u!
  3. BSAM


    Just curious; why did you chose Scottrade?

    What day did you buy the 300 shares of FLEX?

    If the stock goes in the wrong direction, at what price will you get out?
  4. No joke - NVDA looks like a good BO (glad I got in on Friday even if I did get a crappy fill).

    Onto FLEX:

    The thing about TA is that there are indicators the majority looks for. For example, most TA people watch the 13 and 50 MA's be they simple, weighted, volume weighted, etc. These indicators tend to be self fulfilling. What I mean is, when everyone says, "hey look, FLEX is bumping its head on the 13 and 50 day MA's, I believe I'll either A.) Sell or B.) wait to buy until we clear this 'iffy' zone." When a lot of people say that, the proficy becomes true. So your entry is about 4 days too early, IMO.

    However, what I do see as good is that you have picked a stock that has nice motion.

    Keys to swing - find the indicators most people use and use them, then adjust your indicators that indicate those indicators earlier than others indicators. However, you must realize that if more people use specific indicators that indicate the first indicators, then your indicators will have a margin of area relative to the amount of people using the indicators you use and those used by the majority.

    Another key - learn candlesticks in relation to volume - when I figured that out, I didn't make more, I just understood what the heck happened when I screwed up.
  5. btw, I had scottrade for a while. That platform sucks! Do they even do their own clearing? The BA is always at least 5 to 10 seconds behind everyone else's.

    I have a friend who still uses it, and when I see something interesting go through on the tape, I'll say, "hey, do you see that order at $x.xx for XX,XXX,XXX shares?" He'll say no. WTF?

    Low flat commission gets you low flat service. Their "brokers" don't know their PnL from TnA!
  6. I see what you're saying-in your experience regarding MACD Do you primarily buy at the convergence of the lines or when it is clearly going up?

    I got your point about the support level-i'll put that in my notes-thanks

    Checking out NVDA.
  7. I chose scottrade because of the lower rate.

    I bought on 7-27

    I'll get out at $ 12.50.
  8. Why does NVDA look good to you?
  9. Just as an observation, I normally use the motto "Make the math make sense".

    If you are willing to sell at a full dollar loss, and willing to take profit at a 50 cent gain, you must be right over 67% of the time to make money, not including commisions. I have no credibility on swing trading, but make sure when you are trading that you do not put undue pressure on yourself to achieve unbelievable results to break even.
  10. GTC


    It would cost $3 or less at MBT, IB, CyberTrader, etc. Besides, Scottrade does not only have direct access routing options but also doesn't have conditional orders or trade triggers. The fills with the direct routings are often better. Scottrade does not accept a stop-loss price as well as a limit sell order in the same position. Therefore, you might have to watch your stop-loss price and profit-taking price all by yourself in a fast market.
    #10     Aug 15, 2005