The markets actually traded normally for a bit today. What a refreshing change.
Thursday, September 30, 2010
Market follow through
The markets actually traded normally for a bit today. What a refreshing change.
AAPL
Tuesday, September 28, 2010
MCP cup and handle
AAPL
Where theres smoke theres fire
Thursday, September 23, 2010
NFG
TNA TZA sequence
SINA limmerick
Wednesday, September 22, 2010
More timing and pullbacks
Despite its call letters NFG was anything but "No Fucking Good". It was a stellar performer.
After playing the SVNT pop and shorting the pullback, I went long again right after and got stopped out when it fizzled. I thought to myself if I was the ones that wanted to acquire this stock I'd wait until the markets were going down in order to disguise my buying(if that was the reason for the big pop earlier). So I waited. When the markets did a feeble pop then moved down SVNT popped up. AH ha!
Timing
Pops and pullbacks
Optimum times to enter stocks that are moving is when they pop or pullback contra or with the real trend. The risk is minimal when you can time it right. Your job is to wait for it to tell you it is time by the way they move. In each case set the stop just under the range of the previous candle.
1st chart NZ pullback after big pop
Thursday, September 16, 2010
Game plan
Due to market conditions my game plan for the past little while has just been to scalp TNA and TZA during the day for .20 gains or whatever and then position myself for the last hour of the day low volume run up. I'm happy to do that as that is what the market is giving right now for the most part. However there are still stocks that run and present classic patterns to trade that actually follow through for multi dollar runs. Today SINA was one of those. Yesterday it was SVNT.
Thursday, September 9, 2010
Patterns to trade by.
One of the unexpected side benefits that comes from doing this blog is when I get some thought provoking question from a reader that leads to a good blogging post.
"How to develop an edge" is always on new traders minds. Here is a way to burn high probabilities chart patterns into your mind.
I like to keep things simple and I am a visual person, not a touchy feely or over analytical type. Drawing ascending or descending triangles on charts will show you visual representation of what is happening. Ascending triangles means higher highs and higher lows, descending means the opposite. When the point of the triangle breaks through resistance or support , it means momentum and opportunity are present. Trade it. Grab it. look for more.
It's optimism and pessimism, buyers and sellers in control. Going with the flow. The patterns are not 100% guaranteed so just play the probabilities.
Print these out (black background will kill your ink though) or find the same patterns yourself and make "flash cards" out of them. Have a friend show you these one at a time in a rapid manner. Your job will be to identify what they are, what direction they are moving and decide on the probable, typical outcome within a second or less such as - ascending triangle--up--buy. Or descending triangle--down--short it. You can probably do it on computer as well but get out the scissors and make these little flash cards instead. It turns them into something tangible you can touch and makes them real.
A task like this will hurry your pattern recognition skills and decision making skills along.
An important note- I am not too picky about or debate whether a pattern is there or not or if tails are in the way. If I can see the pattern it is there. Don't debate yourself if it is not perfect.
Also if a pattern does not follow through, that gives you valuable information as well for a move opposite the probable or typical can mean an excellent and strong trade that way.