Hi Everyone, Just wanted to express my gratitude to Vinny & Seanote & others that are posting their real trades. Perhaps that is because my style is also to look for .20 to .40+ gains and keep losses to .05 to .10 on large share sizes. I mostly trade the QQQ stock but I am branching out. I'm a rookie and I like the range that QQQ trades in - it is easy to match up it's movement to overall market sentiment. It seems safer, somehow -maybe that's an illusion? Now I'll just shut up and try to learn something... Could I ask a questions? 1) can anyone recommend an accurate, clear source of learning about the price/volume relationship between futures and equities? Thanks for the help, Paul
How large is your share size? I think .05 or .10 stops are too tight. You'll end up getting whipped around all over the place (especially in market stocks). It's better to scale into a position and add onto it if it moves in your favor versus getting large size at one price and sweating bullets when it downticks.
GoldenArm, Thanks for reply post... Actually I do usually scale in/out - I have been trading most often in 500 share increments and will scale up to 1500 when things are going my way - if the trade goes against me quick I "mental stop" out very quick - I have learned about preservation of capital the hard way in my first weeks. So far I tend to be "right" on a trade about 60% of the time and wrong about 40% - my theory is that if I only take small losses and let my winners run, the math is in my favor. Am I clueless or is my logic sound? Comments appreciated, for or against. I am amazed at how tough trading is from a psychological level. I'm trying to learn how to be more mechanical and to not 'invest" emotionally in any one trade. I must admit that sometimes fear prevents me from letting winners run - I hate it when a winner turns into a loser so I probably take profits faster than I should - I leave a lot of money on the table...
I think that has something to do with the fact that stocks are setting lower lows and lower highs. Until this corrects we will remain in a bear market and these indicies will continue to show a downtrend.
$14.50 area on TYC $12.80 area on AOL I'm giving these more room since I feel the market will have a heavy selloff Wed or Thurs.