we'll have to see how tmrw's employment report will affect these patterns.
Thursday, July 31, 2008
Interesting Patterns Taking Shape
we'll have to see how tmrw's employment report will affect these patterns.
Wednesday, July 30, 2008
Strong Conviction In Your Analysis and Your Trades
I made 5 day trades today. WB, SKF, MEE, HK, & HES(thanks blue). I was going in with big size. Cleared another new 2008 record day. This has by far been my best month trading ever! Today is seemed like i was seeing breakouts and strong moves way ahead of time. i would position early and even when the trade went against me, i felt confident enough that my analysis would pan out and the position will be profitable. Strong conviction but never stubborn.
Tuesday, July 29, 2008
If You Have Been Struggling Lately. Try These Tips: By Alan Farley
Avoid The Midday: The most annoying price action these days pops up between 11 a.m. and 2 p.m. EDT. This is the period when computers and hedge funds attack price pivots, trying to break highs and lows to fish out the stops. So get your work done in the first hour and don't come back until everyone has eaten their sandwiches.
Learn To Daytrade: Shorten your time frame and play the quick bursts of buying and selling pressure during the intraday markets. Just make sure to get out as soon as momentum starts to turn and move on to the next opportunity.
Limit Total Positions: Find just one or two promising opportunities in a session and work those trades to their final outcomes. Take off the rest of the day when they close out, rather than flipping the freed-up funds into new positions.
Lower Share Size: Smaller positions can move through greater daily ranges and not shake you out. They dampen volatility levels and let large-scale support and resistance levels work as intended with your trading strategies.
Learn To Daytrade: Shorten your time frame and play the quick bursts of buying and selling pressure during the intraday markets. Just make sure to get out as soon as momentum starts to turn and move on to the next opportunity.
Limit Total Positions: Find just one or two promising opportunities in a session and work those trades to their final outcomes. Take off the rest of the day when they close out, rather than flipping the freed-up funds into new positions.
Lower Share Size: Smaller positions can move through greater daily ranges and not shake you out. They dampen volatility levels and let large-scale support and resistance levels work as intended with your trading strategies.
Monday, July 28, 2008
Seeing A Lot Of These Patterns
Expecting a big down day in commodity stocks tomorrow and probably the market in general.
Sunday, July 27, 2008
Friday, July 25, 2008
Thursday, July 24, 2008
Wednesday, July 23, 2008
Congrats To VKC!!
VKC is a frequent reader of this blog and he nailed an ONH trade with UNG and booked $1400. Congrats dude and i am glad to hear that otehrs are gaining for this technique and benefitting from this blog.
Hope there are more guys out there!
Peace.
SKF Getting Ready For a Big Move Higher
Long 1000 from 118.78 gonna give it some room but fairly confident this pattern will work it's way higher.
Tuesday, July 22, 2008
Icon Bet With Ragin Cagin On WALLSTREAK.com
RC and I are betting about the direction of the indexes at the close. I bet they close in the green and he bet that the indexes will close in the red. The winner will change the loser's icon for one week. So RC, here's the icon i want you to show if i win! hahahahahaha!
Monday, July 21, 2008
Thursday, July 17, 2008
New Blogger: Options Trader NickHO
If you are into options or ever thought about options trading you need to check out:
http://oetrader.blogspot.com/
That guy is damn good and he knows options!
http://oetrader.blogspot.com/
That guy is damn good and he knows options!
The Good, The Bad and The Ugly
The GOOD: that ONH in MA: Booked $1771 on it.
The BAD: Bad as in AWESOME! Was the SKF trade that i posted earlier. Booked $6600.
And The UGLY: That NASTY red figure is a $2900 loss in FNM(the most bullshit trade ever!). It's my biggest loss this month and i took a picture of so to remind me that a BIG SHIT trade that had no merit could turn a great day into a decent day amd i am very lucky as it could have ruined my day all together. Have to cap off those losses right away especially with large positions.
NEVER LET A LOSS GET THAT BIG!!
total PnL: 5400
Wednesday, July 16, 2008
Over Night Holds (ONH) Explained
One of my favorite trades are Over Night Holds(ONH). Sounds like a swing trade but it's NOT! It's more like a momentum(MOMO) play. I am looking to stocks that follow thru the following day. If I short Over Night I am looking for a Gap Down and if long Over Night i am hoping for a GAP UP the next day. I am very very picky and only demand THE BEST POSSIBLE TRADE i can find, if i don't find anything, then i will DO NOTHING.
Things To Look For:
1. NEVER hold overnight a stock that reports earnings after the close or in the morning. Be AWARE of earnings and avoid them like the plague.
2. Always be on the look out for hot sectors, short squeezes, highly shorted stocks & momo stocks.
3. HIGH OF DAY (HOD) and LOW OF DAY (LOD) closes. I literally wanna see the stock close on it's HIGHEST tick of the day for long positions and LOWEST tick of the day for short positions.
4. VOLUME, VOLUME, VOLUME! I wanna see volume and lot's of it. Smart money is always most active near the close and if you see heavy volume going into the close, that should tell you something. It ain't mom and pop shuffling shares around. It's THE BIG GUYS squaring off their positions.
5. Always Trade in the path of least resistance of the market. If the market closes on it's lows on strong volume, then you want to take Short Over Night Hold(ONH) Candidates, not long positions (for this strategy)!
6. DISCIPLINE!!! To take a loss if there is one if the stock doesn't do what you expected! GET OUT! Have faith in yourself!
7. You wanna BUY/SHORT right before the close after you are confident you have made the right decision and you have found a winner.
That's it. It's sounds simple and you'll find out it's easier said then done. hahaha! Just needs a little practice and eye training.
Here's my results for Over Night Holds For the MONTH of MAY and JUNE: These results reflect if my real Over Night Results If i held for 30 minutes after the open the next day after initiating an Over Night Hold.
| May | O.N.H./30 Min. | June | O.N.H./30 Min. |
| 1-May | 3000 | ||
| 2-May | 2200 | 2-Jun | 3500 |
| 3-May | Weekend | 3-Jun | 800 |
| 4-May | Weekend | 4-Jun | -1500 |
| 5-May | 2200 | 5-Jun | 2600 |
| 6-May | -1500 | 6-Jun | 500 |
| 7-May | -3000 | 7-Jun | Weekend |
| 8-May | 0 | 8-Jun | Weekend |
| 9-May | 0 | 9-Jun | |
| 10-May | Weekend | 10-Jun | -500 |
| 11-May | Weekend | 11-Jun | 2000 |
| 12-May | -1500 | 12-Jun | 0 |
| 13-May | 1000 | 13-Jun | -1000 |
| 14-May | 2200 | 14-Jun | Weekend |
| 15-May | 0 | 15-Jun | Weekend |
| 16-May | 3000 | 16-Jun | 3000 |
| 17-May | Weekend | 17-Jun | 5000 |
| 18-May | Weekend | 18-Jun | 2900 |
| 19-May | 0 | 19-Jun | -3000 |
| 20-May | 0 | 20-Jun | -800 |
| 21-May | 7200 | 21-Jun | Weekend |
| 22-May | 0 | 22-Jun | Weekend |
| 23-May | 9000 | 23-Jun | 500 |
| 24-May | Weekend | 24-Jun | 1000 |
| 25-May | Weekend | 25-Jun | 0 |
| 26-May | Weekend | 26-Jun | 3750 |
| 27-May | -3500 | 27-Jun | 0 |
| 28-May | 28-Jun | Weekend | |
| 29-May | -1500 | 29-Jun | Weekend |
| 30-May | 30-Jun | 4200 | |
| 31-May | |||
| TOTAL | 18800 | TOTAL | 22950 |
As you can see this strategy works but you need to know what to look for, you are not gonna get them right all the time but the results speak for themselves and you have to practice and learn what to look for. This strategy is just ALL trading strategies, it requires THE DISCIPLINE TO SELL if you DO NOT GET THE GAP. If the stock doesn't do what you expected, then get OUT immediately. Take the loss if there is one and have faith in yourself to spot a winner on your next trade. DISCIPLINE!!!!!!!!!
A Picture is worth a thousand words: Look at the charts above and train your eyes to spot this pattern and behavior going into the close.
Check Out the Charts ABOVE: I put two charts for each stock. First chart shows what the stock looks like on the 5 min. charts and the second chart shows what the stock looks like on the daily chart when it first caught my eye for an ONH candidate.
Hope this helps you in your trading.
and remember, you make your own trading decisions.
Trade Smart!
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