Kids these days!

So I was teaching my 5 year old daughter the basics of trading again earlier today. Green candles tilting up you buy, red candles going down you short sell etc.

Later she was busy playing tea party with her dolls when I stepped out to the kitchen to get a snack.

When I came back she was sitting in my chair and looking very pleased with herself. "See daddy see, I bought it and the green candles are going up"!

What! The little devil bot some TNA I had keyed up and had a .18 gain already. Alright sweety, good job, please give me my chair back.

I put a stop in and sent her to get a chocolate chip cookie as a reward.

Trade what you see!

Rocketships and Piledrivers pt.2

Here is another rocketship. MDCO. I didn't catch any of the long and so was watching for the momentum to exhaust itself. Gravity usually takes effect on a huge move like this. The trick is all in the timing.

Right after the new candle begins I initiate a short, place a protective stop above the high of day so MDCO would have to make new highs in order to stop me out.

The trade immediately goes my way so I add more size about every .50 down. I do this because I add to my winners and let momentum pay off.

Never add to your losers, close them out instead.

Now I am waiting for a place and time to exit. On a bigger candle I see my chance and easily buy to cover from all the sellers.

The same technique can be used on a stock pilderiving lower as well.