My previous post went on about choosing stocks that have friendly trading characteristics that match with your skill set.
Here are two entries at the same time.
BTU is a stock that I mentioned and trade frequently. It has a good daily trading range,$ .01 spread, high volume but it is also a good trending stock. No hype, flash or tech announcements. It is steady.
EDZ is a ETF that I've never traded before now. Probably a 3x. Volume is OK but not like FAZ or TNA, spread is from $ .01-.04 trading range is very good, volatility looks high.
In this trade BTU made an $.80 move, easy, relaxed, no tricks, traps or tails.
EDZ stopped me the the first trade for a .$13 loser then made a $1.20 move but I could have just as easily took only $.35 off it as showed it was going to drop big again and in fact almost went back to my entry before rocketing up. It moves fast.
(sorry I lost my EDZ entry chart)
1st chart is BTU short
2nd chart is BTU exit
EDZ exit
2 comments:
Point Noted. I noticed EDZ and EEV because they are always on the new high list whenever the tickers were scrolling red.
Unfortunately for me, I can't short QLD without emailing my broker and asking them to locate the shares. The other day, I hadn't been allotted any QLD yet, so I went long on EDZ, and holy moly, that stock is insane. Very difficult to trade. There are market stocks like X and FCX that are "easy" to short, but when they don't participate on the market moves, I get frustrated and would rather have been in an etf. Does that ever happen to you?
Also, very random question. I think you say you wake up at 7am and start trading at 730? How do you wake up that fast? Since I have started trading from home, and not at an office anymore, I don't have that 15 minute drive to wake me up. I have slowly been getting up early and early, now around 615 to allow myself time to become fully awake by 730. I don't drink coffee but I think I may start. Any tricks you employ?
j- you could trade FAZ BGZ QID and probably many more. But if things are going down, i just pick some and trade them that way.
ya i get up at 7am and start 1/2 hour after that. i find it ez to wake up and frequently wake up a couple of minutes before the alarm goes off. I do my visualizations about both market directions and my typical edge set up in both directions. i might go for a brisk walk or ride for 10 minutes, take my fish oil capsules and make a fruit smoothie(blueberry, hemp greens, strawberry, kiwi, egg, milk etc)
and I am ready to go.
stay away from coffee that stuff is no good for you
don't read any web, news or emails or distract yourself before you start.
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