Trading a ranging stock - strategies

Discussion in 'Strategy Building' started by tenfly, Dec 2, 2003.

  1. tenfly


    Hi there,

    I'm brand new to the world of trading as I just began my new career as a prop trader for a large firm here in Canada.

    As part of our training, I get the immense pleasure (sarcasm) of trading JDSU all day, which is very very similar to SUNW, SIRI, RDBAQ etc..

    I've been reading these forums nearly every day trying to improve my skill and learn new strategies. I've been studying candlesticks, pivot points as well as many different TA tools.

    I feel that I would be better trading a stock that actually moves quite frequently such as ORCL or MSFT. However, I'm finding problems trading JDSU and I just don't know what to do. My mornings are great, I usually always make money. However, I typically lose it in the afternoon when the market basically moves sideways for 3 hours or so. It'll be at a price level for about 30 minutes, suddenly drop, and move back up. I've been trying shaving to keep myself busy, trying to earn at least a fraction of a penny, but I find I'll put in a bid a 3.4030 Long for example, and with my luck it drops and I have to take a loss.

    I've been managing to cut my losses, and accept my profits without getting greedy, but all of the strategies I'm using, be it pivots, candles, macd, directional movement, sar, or what have you feel like they would be working better for a trending stock, rather than a ranging stock such as JDSU.

    I was curious if anyone has any suggestions or tips to maybe help me out a bit. I've very willing and anxious to learn, so anything would be greatly appreciated to help me through this time until I can trade a decent stock.

    Thanks so much

    Scott Roy
  2. Arnie


    Quit trading the dull times!! This game is hard enough. A lot of mid day action is just noise. I wouldn't place a whole lot on indicators. Focus on the price action. You seem to be on the right track. Good luck.
  3. tenfly


    I guess I should mention, while I'm in training I'm basically FORCED to ONLY trade JDSU and since I'm lucky to have a second stock, I can also trade SUNW (nearly a twin, but more volume lately) when I'd REALLY like to trade ORCL...

    So just for anyone offering a fix of "stop trading JDSU", that won't quite work :)


  4. ig0r


    Arnie didn't say to stop trading JDSU but rather not to trade the middle of the day, 11ish to 2ish
  5. lescor


    Since jdsu and sunw are almost twins and you can trade both of them, have you looked at pair trading them? Meaning always long one, short the other, trading the spread. With a spread, you might find a trend to trade, or play the outer ranges and cover in the middle.
  6. It sounds as though you are trading because you want to trade, not necessarily because you perceive the odds as being heavily in your favor. Even though you are just "training" now you should start cultivating the attitudes that will hold you in good stead for your whole career. Better to make 4 spectacular trades a week than dozens of half-assed trades. As another poster offered, if you are making money in the mornings then trade the mornings and sit on your hands in the afternoons - especially during the lull.
    Welcome to trading! The best strategy you can glean from this thread would be to get some psychology books and start studying yourself alongside your T/A.
    Best of luck.
  7. welp its obvious. stop trading after the morning. i know your lil prop shop wants you to keep churning but just say f em :)