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Thursday, August 10, 2006

What a cluster f*ck



I am glad my England trip was last month, or I would be in a world of hurt right now.

On the bright side, way to go UK authorities for stopping this plot!!!

Despite some crazy action, I am not finding a lot of opportunity today. I am in a few positions, but nothing spectacular. Hopefully you are having a good day - if so, post your trades in "Comments".

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14 comments:

KayakHandy said...

RIMM on the third breaking hammer at $69.90. RIMM has gone way beyond the Fib extention I am out at $73.34 as I right this. Only could afford to hold 350 shares but this is my best trade of the week now on .46 cents risk. That a 7.4:1 risk reward ratio...much better than I expected.

You guys are great!!!!

Trader-X said...

Nice trade Kayak - I completely missed that. Did not even have it on my watchlist. Very nice!

thiago said...

Did not find many opportunities either.
Stopped out on DT short. Entered on 3rd bar break (15min)

John said...

Nice trade Kayak. 7.4 to 1 is fantastic. A guy could end up rich that way. :-)

Mr.Doji said...

Short BA on 0945 doji @ 75.95
Covered @ 75.55, a quick scalp.

estocastica said...

It makes me very happy to see great trades like kayakhandy's today! Much credit goes out to Trader-X and Tom C. for making this possible and selfishly improving the trading of many, many people. Again, great trade kayak!

estocastica

John said...

Anyone have any thoughts on TOMO. I went short below the 4th bar on 30m chart and was stopped out a short while ago on the 11th.

The only thing I can see is the the first candle was wide range (on a 30m chart I expected the candle to be wider) with a long lower tail. The 3rd bar, however, was bearish and ended weak. The 4th was narrow range and weak again.

Any input would be appreciated. Both my trades today were stop losses, so I'm trying to identify anything I might have missed.

Thanks in advance,
John

Dan B said...

Kayak, nice trade, but out of curiousity, how RIMM end up on your radar for the day? or is it a stock you check daily?

Jon said...

ASEI was wonderful for me today. Went long on the break of 2nd bar high (15 min) and then again after consolidation on fibb ext.

Thoughts?

Charles (in San Fran) said...

John, what was your rationale for shorting? I don't see much of a set-up. The first bar and even the 4th were kind of doji-ish, which is indecisive. And, as you pointed out the first bar was really wide-range. Just curious as to your thoughts on why you shorted.

John said...

Hi Charles,

I'm afraid I don't have very good reasoning. I have seen a lot of trades posted here that are reversals out of the retracement zone. This was my main reason for taking on the trade. I seem to have trouble with spotting those wide range first bars when they are mostly wick with very small real bodies.

The 3rd candle on the 30m chart was kind of a shooting star and I know that can signal a bearsish reversal. When I saw weakness on the 4th candle I entered the trade.

Reviewing the set up now, I can see the the second and third bars stay in the upper 1/2 of the first which should have clued me in to possible strength.

The only other thing I can say, is that I've been trading X's methods for only about 3 weeks, so I'm still learning.

I hope to start doing better soon. I also shorted IMCL today which stopped me out too. This was even more disappointing since it essentially tagged my stop loss and then moved lower. I entered just before the 10th bar ended on the 15m chart, using it's high as my stop loss and was stopped out on the very next bar. I admit this was not a great place to enter on the 15m, but I was jumping between that and the 30m looking for entries. IMCL looked good to me on 30m but I used the 15m candle to keep my stop loss lower.

Maybe you have some thoughts about stop losses. I set mine $.02 above/below the high/low of the current candle with a $.03 cushion to fill. So if the high $1.10, I set the stop order to activate at $1.12 and fill at $1.15 or better. I use this method for entries as well.

Thanks for your interest and I appreciate any insight. I feel like I'm getting closer, but for now I'm down about $170 this week and still turning in losing trades.

Best Regards and Good Trades,
John

KayakHandy said...

Hi Dan, I already had my watch list and RIMM was not on it... but I was also watching a real time ticker of stocks that had building volume and larger numbers of trades that were unusual and RIMM kept repeating over and over again for a couple of minutes then it would slow down and then pick up more trades like crazy again to the upside for a few more minutes so I thought it was worth watching for a while...it looked great on the 15 min. and the 30 min. as the day progressed.

Thanks for the Kudos guys but X deserves all the credit...all I did was follow.

DanB said...

hmm, thanks for the reply kayak.
I just have a problem with my watchlist, they all just seem to be flat, or very eradic.
What tool do you use to catch stocks which "had building volume and larger numbers of trades that were unusual"?

KayakHandy said...

John, Here is my feeling on getting stoppped out or whipsawed only to see your position turn your way after you get knocked out.

I have noticed that with a volitile choppy market like we are in and with regards to taking short positions you must set your stops a little looser to not get whipsawed so easy. This is counter intuative(SP) because in a volitile market it would be normal to tighten the stops but I have noticed that when it comes to short positions a slightly loose stop is better as long as you feel confident about your position. That Imclone trade could have been Golden!

Kayak