Trading Dummies

Discussion in 'Journals' started by Babak, Aug 31, 2005.

  1. Babak

    Babak

    Its inside candle or counter trend candle. Read the thread and the many lessons on CM's site if you want to learn dummies. TraderMike stands aside for the shake out in the morning, that's his tweak.

    As to which direction to trade, I've covered this. Again, read the thread and all of CM's many lessons (first link in first post).

    When will CM's chat be opened? No idea, you'll have to email him. I would guess sometime soon as he mentioned he's getting back into trading after a hiatus.

    And remember this is no magic bullet. Its just one strategy. You'll have to first learn it and then tweak it for yourself. And never forget risk mgmt.

    edit: BOOM PALM GNSS
     
    #131     Sep 23, 2005
  2. Babak

    Babak

    BOOM gapped up (but not too much) and coupled with sort of day/mkt I believe we're in I was looking to buy. Very tough to hold on to it through mid-day shakeout so lost out on the late day ramp up.
     
    #132     Sep 23, 2005
  3. Babak

    Babak

    PALM gapped down hard (17%). I was looking for a bounce up. It gave one but very weak and brief.
     
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    #133     Sep 23, 2005
  4. Babak

    Babak

    GNSS trended a bit better but I still don't like it when it breaches previous candle's low. Still about a +2.5 R.
     
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    #134     Sep 23, 2005
  5. Babak

    Babak

    AMD was in play due to a glowing article in Barron's over the weekend. Due to the article, the general tone of the mkt and the fact that it didn't gap up too much, I was looking long. Of course, in hindsight, the hod candle would have been a great dummy trade short.
     
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    #135     Sep 26, 2005
  6. Babak

    Babak

    AEOS also gapped up on high volume but wasn't able to sustain an uptrend after that.
     
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    #136     Sep 26, 2005
  7. Babak

    Babak

    See attachment for details.
     
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    #137     Sep 26, 2005
  8. Babak

    Babak

    I've also been thinking of a different way of trading dummies. Rather than waiting for a scan to pick up a candidate, why not have a few preselected and watch them?

    For example, why not pick out a few very strong stocks and see if there's a dummy long set up during the day?

    TS fits the bill as its had a huge run up (oil services sector) and it pretty much repeated Friday's action today.
     
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    #138     Sep 26, 2005
  9. Babak

    Babak

    And also gold stocks fit that bill. Today, you could find dummy entries in almost all major gold stocks. GFI actually gave two signals during the day.
     
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    #139     Sep 26, 2005
  10. I usually look the the previous evening and the pre-market activity to pick my choices.

    Generally I look at fundamentals that could influence positively the stock and wait to see if technicals speak right to me little soon after the open.

    Nice charts btw. :)
     
    #140     Sep 26, 2005