Trading Dummies

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

  1. KevinK

    KevinK Guest

    BRL right near my new stop. I got in as it broke out of the inside 3rd bar. I have a tight stop to preserve my gains.
     
    #31     Sep 6, 2005
  2. KevinK

    KevinK Guest

    I meant FUEL.

    Note: I am considering trailing stops of the 5 EMA looks like it would have preserved a lot of my gains today
     
    #32     Sep 6, 2005
  3. Babak

    Babak

    I think you misunderstand. He is getting in using a buy stop above the high of the inside bar.
     
    #33     Sep 6, 2005
  4. Babak

    Babak

    I was watching ICGE and AVID (Barron's mention). Pretty choppy as already mentioned. BRL seems to be trending nicely but I didn't catch that on my scans.

    Look at PDLI go! making new highs for today. Sheesh...oh well.
     
    #34     Sep 6, 2005
  5. KevinK

    KevinK Guest

    Yeah that's why Im pissed I didn;t have my trailing stop method in effect then, would have made more than a grand. :confused: :confused: :confused:


    shit happens. it's the adjustments that matter.
     
    #35     Sep 6, 2005
  6. KevinK

    KevinK Guest

    Missed my screens too :mad:
    Would have been an easy inside bar breakout entry for a good 1.20 or so. Oh well!

    These are still the early days of me playing this system...Babak and I are making tinkers to fit our own style, and in the future it will be even more effective. We both reccomend you make adjustments so it works for you (time parameters, risk profile etc.)

    Good luck and I will post the charts later on!
     
    #36     Sep 6, 2005
  7. Babak

    Babak

    Couple of points re PDLI (I know this is hindsight!):

    Using 30 min. would have not gotten you whipsawed like that. I read MaoXian say on his site that traders using 5 min. last 5 years, traders using 15 min. last 15 years...or somthing to that effect. I think he was being facetious to get across a point.

    As well, you could have technically gotten back in (using the 15 min chart) after being shaken out. The entry would have been the 8th bar (NR7 just above $29.25) after the shake out. It offered a really good (tight) entry.

    Again, this is hindsight so take it with a grain of salt.
     
    #37     Sep 6, 2005
  8. KevinK

    KevinK Guest

    Yeah..all points are valid, but I felt uncomfortable trading it.
     
    #38     Sep 6, 2005
  9. KevinK

    KevinK Guest

    BRL has made back much of my day's losses. I am letting it run for now, I am watching it and will get out if it breaks the 5 ema by a few cents.
     
    #39     Sep 6, 2005
  10. Babak

    Babak

    Note: this is for 5 min. interval (frowned upon by classical 'dummies'):

    ICGE had my attention from premkt when it gapped up (around 8-9%) with good volume/liquidity. It started trading briskly but faded a bit. Since the gap up move wasn't very large I was looking to get long.

    The signal according to dummies comes from price above the downtrend candles. Entry would have been $8.40ish with stop below signal candle at $8.32 appx. You would have required very nimble fingers to get in as well as out. The spike up surprised me with its speed and I wasn't able to get in. I just wanted to show this as an example of entry/stop/exit. Hypothetical result: around +2R

    The grey box is where I think most people should have been successful exiting this trade (partial or complete). You could have trailed a stop based on R or below prev. candle's low or as Kevin suggested 5 EMA.

    Again, this one required lightning fast response - both to get in and out and I don't think anyone would have been successful at both. I just wanted to show it as an example of 'dummies' so that the strategy would be clear.

    The green circles would be what we watch for on the next candle. That is, in this case we would want it to trade above that price level and entry would be using a buy stop at same.
     
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    #40     Sep 6, 2005