Futs starting cooking upward on you right after entry. I know because I was short the index futures myself. Don't sweat it. Go on to the next trade.
for more on vol & price check out does volume head price or price lead volume? thread http://elitetrader.com/vb/showthread.php?s=&threadid=84767 don't miss excellent commentary by bearbelly and if you like his post then check out where he learns to hone his craft Spydertrader's Jack Hershey Futures Trading Journal http://elitetrader.com/vb/showthread.php?s=&threadid=83604 since you trade stock just substitute the word future with SPY, Jan is all about volume & channel, since you already have channel on your chart you may as well learn how to draw them in the money making way.
So I have to watch futures, too, in order to trade stocks? So I can just watch SPY instead? Cool. So are you saying that SPY leads and YHOO follows? Oh, and thanks for the links to those threads.
No. I dont look at futures, but it does help when trading oil stocks for example. What I dont get is that you covered after a .07 loss?. I was short YHOO too for about two days..didnt make much, lol. I noticed that you took off most the indicators. Indicators can be a pain in the ass, because they give so many false signals regardless of time frame. On this chart, MFI is falling, but price keeps rising..what do you do?... it's these kinds of situations that get a bit confusing. Ignore the indicator and focus on the chart. Stick to the basics, trend lines, s/r levels, and common chart patterns.
Your reason for exit was the fact that your lunchbreak ended... How can you be serious about anything if that's how you're trading... No offense, but I think you should reschedule your trading ...
I have roughly an hour most days for my lunch. I can't watch the market all day. If after an hour I'm not profitable I'm certainly not going to keep my position open while I go back to my normal job. But I see what you're saying.
I agree with other posters, if you're only able to monitor the markets for an hour a day, you probably shoudn't be daytrading. Getting in a trading "fix" during lunchtime is a fine line away from gambling, despite how much your TA analysis is convincing you otherwise. Stick to swing/position trading. You'll find TA, trendlines, indicators, etc are oftentimes more reliable on larger timeframes.
======================= IFi; Another way to look on it follows. [1]Market direction specifically /ES futures/SPY/SPX has a definite relationship on stocks.William O Neill says about 75% of time[investing/swing trading context.] [2]Part time almost never has full time results, but i invest RE part time ,profitable for over 20 years.YHOO is in a good downtrend by most all measures, hasnt been much above 50 dma [which is a helpful individual/institutional Trendline], last 12 months. [50]Even though YHOO has been in a good downtrend past 12 months, but now SPY is enen stronger, YHOO is now above 50dma, and suprisingly the gap[1-24-07] was NOT sold, which is more short term strength. Probably good short later Wisdom is profitable to direct