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.
Watch the new highs/lows ticker and keep you eyes open for opportunities like these and set a stop so that if it doesn't follow through you can keep the loss small.
Trading is tuff these days, I wouldn't want to be a beginner trying to learn the ropes but if you can adapt and apply your system and edge successfully now then when or if the markets return to "normal" conditions it will all seem just too easy. Meanwhile bide your time and practice on the areas that need work.
1st chart SINA ascending triangle break to new highs
2nd chart SINA, sell into all the buying frenzy.
4 comments:
Thanks for the post Scott - and the encouragement. It is good to hear that these are not 'normal' times in the market.
And - another big thanks for that last post on the flashcards. Most excellent.
well "normal" is all relative and after a while the unusual becomes the normal so adapt or die. adjusting your strategy for the ever changing conditions is always the challenge. it just seems more so at the moment. still lots of good signals out there though. cut through the noise, play slower movers, be ready to change direction at any time, keep playing the longs as the markets are rising, be ready to throw everything in short when the house of cards collapses.
hows that for a game plan??
Scott,
During your 2-year training phase, were you using the HOD/LOD screener? Because you said you use it as an indicator of momentum, I'm wondering to what extent it played a part of your initial development.
bct- no i didn't start out using it. i didn't know it existed until i stumbled upon it while searching what my trading platform could do.
i immediately knew this was an indispensable tool. real time movers displayed in front of me meant no more searching the night before for would be movers.
half the battle when starting out is finding opportunities to trade and this makes it ez.
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