44 replies to this topic

[vitaminm]

Who prefers 26 dma as stop?
Most es players use 5+/- points stop.

http://barchart.com/.....F09/2011#jump

Fib's comments imply that the trade was not smart. Perhaps I am reading Fib's comments incorrectly.

Not a question of being smart or not. It was a general statement based on the total package. Even in a rip tide there's the occasional eddy. Sometimes you catch, sometimes you don't.

wonder why people keep doing it?

Day traders play by different rules. There will always be opportunities to go against the bigger tide, but it really depends on high deep the waters are when you go into the pool.

In the bigger context, it's human nature to try to "outwit, outplay, and outlast" the competition even if the odds are against you....it's just the way we're wired.

Fib

[fib_1618]

Who prefers 26 dma as stop?

I prefer a 21 period EMA...we all have our preferences.

Fib

[thespookyone]

Reversed my shorts at 1318 to longs at 1320 near the close. 2 point loss on the short trade.



P.S. I will let the night monkeys work towards a gap-up now.

NAV - I'd have kept the short positions.

Good trading.

Ditto, I would have kept the short.

Edited by thespookyone, 09 February 2011 - 06:04 PM.

[fib_1618]

Ditto, I would have kept the short.

Maybe, but NAV has said many times that he has a specific set of rules that allow him to make such decisions.

Knowing that he's not one to "get even" after a losing trade, it's a pretty good bet that he got a long signal at the close.

Fib

[dcengr]

Ditto, I would have kept the short.

Maybe, but NAV has said many times that he has a specific set of rules that allow him to make such decisions.

Knowing that he's not one to "get even" after a losing trade, it's a pretty good bet that he got a long signal at the close.

Fib

The long signal is that I am back and said the c word...

[thespookyone]

Ditto, I would have kept the short.

Maybe, but NAV has said many times that he has a specific set of rules that allow him to make such decisions.

Knowing that he's not one to "get even" after a losing trade, it's a pretty good bet that he got a long signal at the close.

Fib

You are right on all counts. The trade was perfectly executed, as usual. I'm quite a believer in rules, as well. Just don't like the look of the NAZ or energy to stop right here-so I would prefer to be short till a drop tomorrow when I'll exit most of my current shorts-but have no problems getting long then-in fact, I bought one long stock today-it was an order kind of thing...

[NAV]

Ditto, I would have kept the short.

Maybe, but NAV has said many times that he has a specific set of rules that allow him to make such decisions.

Knowing that he's not one to "get even" after a losing trade, it's a pretty good bet that he got a long signal at the close.

Fib

You are right on all counts. The trade was perfectly executed, as usual. I'm quite a believer in rules, as well. Just don't like the look of the NAZ or energy to stop right here-so I would prefer to be short till a drop tomorrow when I'll exit most of my current shorts-but have no problems getting long then-in fact, I bought one long stock today-it was an order kind of thing...

Techm/Spooky/Fib,

These are my hourly momentum trades. I had a valid sell signal on hourly momentum when i took the trade. But since the daily charts are on a buy signal, i did not expect much from the signal, especially in this low volatile environment. I was expecting about 10-15 points on SPX max, which was not acheived. 1220 was my stop and reversal point, cuz my signal flipped there. Yes, there was the cisco event risk. But i don't trade based on news, nor do i care. The only events i am scared of holding positions against are the Fed days and payroll report days. Let's see how it goes...

Edited by NAV, 09 February 2011 - 08:57 PM.

[thespookyone]

NAV, thanks for the heads up on what you saw. Your system is a good one, and you know that you have my greatest respect as a trader. I'm daytrading-or a day or two trading, specific stocks only at this point. And, as a funny aside-as far as my individual trades go, I believe they will trade to target regardless of overall market direction. As I told Fib last night, my main concern at this juncture is getting the rotation of money in and out of sectors right, because it is alowing me some juicy hits-and I just haven't seen the same percentages on offer to me to trade the indexes lately. I don't ever trade on news either-"it's in there" as far as I'm concerned. Good luck on your trade, my friend.

[NAV]

NAV, thanks for the heads up on what you saw. Your system is a good one, and you know that you have my greatest respect as a trader. I'm daytrading-or a day or two trading, specific stocks only at this point. And, as a funny aside-as far as my individual trades go, I believe they will trade to target regardless of overall market direction.

As I told Fib last night, my main concern at this juncture is getting the rotation of money in and out of sectors right, because it is alowing me some juicy hits-and I just haven't seen the same percentages on offer to me to trade the indexes lately. I don't ever trade on news either-"it's in there" as far as I'm concerned.

Good luck on your trade, my friend.

Spooky,

I used to trade with a 1:2 risk/reward, 5 point risk and 10-15 points profit on SPX. I have successfully executed and posted hundreds of trades on this board. It's no more possible in the present environment. It's unreasonable to use a 5 point risk for overnight trades (although gap-downs are rare events these days ) . Without overnight risk, you can't catch most moves in SPX. It's not that the risk has increased, but the reward part is compressed because of the HFT/Low volatility etc. So i have now reduced my expectations to a crummy 1:1 risk/reward 10 point stop and 10-15 points profit. In most cases my system will give an exit before my 10 point stop is hit. So the actual risk/reward is slightly higher. But if i cannot achieve even 1:1 risk/reward, i will quit trading SPX for a while. Cuz there are so many excellent trading vehicles with healthy volatility.....emerging markets, currency pairs and some select commodities. I will move to where the action is instead of spending too much of my energy on SPX, if this low volatility persists.

[TechMan]

Techm/Spooky/Fib,

These are my hourly momentum trades. I had a valid sell signal on hourly momentum when i took the trade. But since the daily charts are on a buy signal, i did not expect much from the signal, especially in this low volatile environment. I was expecting about 10-15 points on SPX max, which was not acheived. 1220 was my stop and reversal point, cuz my signal flipped there. Yes, there was the cisco event risk. But i don't trade based on news, nor do i care. The only events i am scared of holding positions against are the Fed days and payroll report days. Let's see how it goes...

Although the timing couldn't have been more coincidental, my suggestion had nothing to do with CSCO's earning event. I do, nonetheless, understand your setup and logic behind it.

Good trading.