great journal there Bob. i've read this journal for a while but not every posts. if i'm not wrong your method is some kind of averaging (or scaling in). generally i think you did great but also have pretty big down day occasionally. i guess this has something to do with averaging on super trending days..and do you just accept them as a drawback of the method? thanks..and what a great come back last month!!!
Hello glwatts, Thanks very much for your kind words and for taking the time to make a post. It for sure was a tough month last month with the hits I took along with trading with the flu. Glad we are in a new month and I am feeling better I use what is many would call a mean reversion system or what I call pivot trend reversal. I back test currently with a program called stockfinder.com and I do it manually one by one. Its not uncommon for me to spend a whole day on a saturday or sunday and backtest a theory from morning until night. I think I have gained a lot of understanding in price action by manually looking at each trade. I hope that answers your questions and feel free to ask any follow ups if you like Best of trading to you as well !! RW
Hello Fishing, Thanks for saying so and I enjoy writting about my day. Yes, I almost always scale into most of my trades. I am working with a gap up setup that I have at times not scaled in but for my everyday trading I always scale in. "i guess this has something to do with averaging on super trending days..and do you just accept them as a drawback of the method?" I am not totally sure what your question is but if I do understand correctly the answer is that I scale into trades as a method of risk management. Thanks for the kind words about last month. It was a real rollar coaster of of ride. In the end I came a lot closer to BE than I thought I would when at the bottom. Now if I can avoid the land mines this month I should have a pretty good month. I wish you good trading and have a great weekend Respectfully, RW
what i meant is this, on strong trending days the method of scaling in would be a bit too risky..so do you try to avoid those days or just expect those big drawdowns as a drawback of the method? i used to do a lot of scaling in before..and used to have high percentage of green days but got hit as well once in a while. it's quite painful psychologically for me so i stopped. thanks and good trading to you too.
Hello 7rader THANKS for taking the time to post and say so. I can assure you that I will try to keep the momentum up. Best to you and your trading as well !! Respectfully, RW
I went into the office with high expectations as the SnP was up in premarket trading. RIMM reported good earnings and was up over 20% in premarket trading. With less than five minutes before the opening bell I took a short trade with RIMM with a price of 61.07. within a minute of putting the trade on RIMM started falling and I was actually adjusting my bids to cover down and RIMM moved down so fast that my highest bid was hit before I could move it. I moved the rest of the shares down to just over 60 and within a short time at the open the bids where hit and I was out. I have some appointments today so I will be leaving early today. I will miss about the last hour of trading. As I write this I have five trades going on and I leave in an hour and a half. Hope to have the trades closed out by the time I leave but not I will have my laptop with me and the sprint card which works pretty well. RIMM GU + 1024 DAI GU + 368 CLR H, + 734 ICE DS + 57 NoDoji a person in my chat room was nice enough to point out GEOY. I tried to enter the symbol into Tradestation and it said it was an incorrect symbol. Very strange but I put it up on bestfreecharts.com and saw that it was a good short. GEOY H, + 7 but still short shares that I am carrying over the weekend V B6, + 230 HP H, B6+ 4 But still short shares that I am carrying over the weekend. NSM B6+, H+ 20 SKT H, + 190 HXM H, + 356 + 2994 Day + 22113 Week
Hi Wbbank, Acutally I have a list of books that I think are important to read. http://paid2trade.com/?p=79 I hope that list helps and have a great weekend RW