Important insights from one of our workshop participants this week: a ton of good learning inside these ideas
Our initial stop placement reflects the information available when our trade is initiated. Any price action after the trade provides additional information and can be used to update the stop placement. An example is the use of the MACD histogram to exit before taking a full 1R loss.
If your system is designed to catch singles, don’t wait for the home run before exiting. Take the single and move on (until you can recognize when the market is making it obvious that this time you should hold on for more).
Markets may have unique characteristics that should be taken into account when making framing and trading decisions. DBA, for example, can be framed with tights stops, seems to make orderly moves, and sees more action only after the opening of the grain futures markets.
Framing trades with tights stops right after the open feels like getting caught in a dolphin hunt (the underwater tornado). The lunch and afternoon sessions tend to provide a better environment for identifying trades using the WMB method.
The importance of understanding the type of move you’re trying to capture (F –> C; B –> A), and matching your entries/exits with that type of move.
Respect the R.
Opportunities are available any time the market is open.
- Technical Indicators – MACD (businessinsider.com)
- 5/26/2011: Scalp System: Sniper (tradewest.wordpress.com)
- A belief mapping exercise concerning intraday trading (kansasreflections.wordpress.com)
- Veksler’s Forex Blog: More erratic price action, ugly swings and cleanouts ahead (tradingfloor.com)
- FX Options Update: Greece concerns spark EURUSD vols buying (tradingfloor.com)
- Day-Ahead Musings for Tuesday, 5/16 (ampleanalytics.wordpress.com)
- Day-Ahead Musings for Monday, 5/15 (ampleanalytics.wordpress.com)
- Long Index ETF (tradeking.com)
- Equity Update: Optimism remains as Ford gears up (tradingfloor.com)
Price levels you should know for any target in your asset allocation strategy
- Minimum mandatory exposure
- Minimum price level indicating RS momentum advantage
- Limit of Maximum rational outperformance
- Maximum outperformance in the lookback period
- Maximum outperformance since the target began trading
- Your estimate for next new high?
- Price-level targeting: no chance (ftalphaville.ft.com)
- Wholesale Price Index and Inflation (palakmathur.wordpress.com)
- a good friend of mine interviewed me for his trading web site… (kansasreflections.wordpress.com)
- Ministry asserts control over property market (lookatvietnam.com)
- Weekly Forecast (community.tradeking.com)
- Weekly Forecast – Jan 2 (community.tradeking.com)
- Price level stability No 1 goal (amazingchina.wordpress.com)
- Euro Futures 4/11/2011 (elitefuturestrading.wordpress.com)
- Creme Cycles (design-milk.com)
- Prices Go Splat. (stephenkinsella.net)
some analysis in our chatroom today examined hundreds of symbols (ETFs and large cap stocks) that make their high of the day or low of the day in the first hour of trading. To our surprise there are a considerable number who’s probability of an early high or low of the day is greater than 95%.
That’s a staggering number, especially when we examine how much follow thru after the first hour there can be; we’ll be working this up into a tarding staregy pretty quickly because we like the odds and the additional control it gives over our trading, once the morning shenanigans at the open are past
- The ‘Asia connection’ to the commodity rout (ftalphaville.ft.com)
- XTL: A Better Telecom ETF? (businessinsider.com)
- Mini flash crashes worry traders (usatoday.com)
- Recent Calamities Don’t Slow Down US Equities But What’s Coming Next is Anybody’s Guess (businessinsider.com)
- BRIC ETF Investing: Small Cap Edition (businessinsider.com)
- Most Sold-Off Gold Stocks (GDX, GDXJ, GLD, AEM, KGC, BVN, GSS, JAG, XRA) (247wallst.com)
- How To Play The Gold Stocks Consolidation Phase (GLD, SLV, GDX, GDXJ) (businessinsider.com)
- What is Implied Volatility? (tradeking.com)
- Time to Rebalance in May and Call It a Day (dakotavoice.com)
- Five Low-Volume ETFs Worth a Look (blogs.forbes.com)
all of the globsal indices are testing double bottoms, while all 4 iof the main US indices are stronger
the lack of multiple day follow thru has really favored individual companies at the expense of indices
Clear winners have been old boring stocks like: JNJ, KFT, MCD, WMT with INTC in the techs showing real strength as well
http://www.youtube.com/watch?v=sSJIZMLbD6s charts of interest link