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Tuesday, September 26, 2006

Random thoughts

1.) I highlighted a few "bread and butter" trades yesterday, but I was looking over charts last night and noticed several similar set-ups that did not work out. I may have to consider changing the name?

2.) I am putting together a post on the first bar, and some ideas on how to tell if it is too wide. Check back later in the week.

3.) I know many of you have similar taste to me in movies and TV. I mentioned the new show "Brotherhood" a while back, and I just watched the season finale last night. It is a great show, and if you get Showtime you should catch it in repeats. If you don't get Showtime, check out the DVD. It has the Trader-X 100% satisfaction guarantee.



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11 comments:

Prospectus said...

Speaking of trades that didn't work out, any insight onto what I did wrong on these setups?

I traded FNSR, KFX, and FNET. FNET actually would have worked had I not botched the execution. Were there any red flags I should have seen on these?

em said...

Do you mind sharing the ones that didn't work out? I actually saw a few more that worked well(CCL comes to mind) and one that didn't (can't find the symbols). Didn't find any today in my scans.

Trader-X said...

em - I don't remember them, I didn't trade them. I just thought to myself looking through charts - "I am not used to seeing that".

exengineer - what time frame, where did you enter?

Prospectus said...

@X:

I use 30 minute charts.

FNSR: I got in at $3.68, on a break above the 3rd (10:30-11:00) bar. My initial stop was $3.61. It seemed to stall at the OR high, so I got out of it at $3.66 about an hour later.

KFX: I got in at $10.13, on a break above the OR high during the 3rd (10:30-11:00) bar. Initial stop at $9.82, low of 3rd bar. This was pretty wide, but I sized the position down. I set a $0.33 trailing stop, and it got hit at $9.92 at about 2:00.

FNET: Got in at $11.85, above 3rd bar high. Kind of a late entry. Initial stop $11.49, just at OR high. This one hit the fib extension during the 4th bar, but I held on to it, and it dropped back down. Exited at $11.95 during 5th bar. I had the fib, I just didn't take it. Hoping for more to make up for the other losers.

Any red flags that I should have seen?

Trader-X said...

ex-

FNSR - I don't really see a set-up there by my rules. But, what I do see is that even if you entered the profit potential was only .09 to the Fibonacci extension. I think there were better trades. FYI - it stalled out at the 1/2-way point between the high and Fibonacci extension, which I talk about often.

KFX - your entry was below the OR high, and although it took it out a few bars later, it never really cleared it with any strength. That is why I always print my warning about entering below the OR high.

FNET - I would not have traded as there was a declining MA, but it hit the target so was a good trade in that sense.

Anonymous said...

X, you said "I don't really see a set-up there by my rules" on FNSR. To be honest, I don't see any compelling set-ups by your rules on the other two, either.

Its the little things...

TJ

Prospectus said...

Thanks for the comments! I'll keep studying...

QQQBall said...

15M CHARTS.

MERX - pushed back to top of opening range bar - again the .11 stop holds.... went down for 11 to 10.25, but it took forever.

positives - able to buy PB with tight stop & trade in direction of the gap.

ex-engineer, i see you tried KFX. i saw it on the gap list & pasted, ive traded it in the past & its like a bronco some days.

FNET looks better on 15-min chart, no?

i always take at least partials at the target - its important to me psychicologically to stick to the plan, even if i deviate & hang onto some :)

QQQBall said...

15M CHARTS.

MERX - pushed back to top of opening range bar - again the .11 stop holds.... went down for 11 to 10.25, but it took forever.

positives - able to buy PB with tight stop & trade in direction of the gap.

ex-engineer, i see you tried KFX. i saw it on the gap list & pasted, ive traded it in the past & its like a bronco some days.

FNET looks better on 15-min chart, no?

i always take at least partials at the target - its important to me psychicologically to stick to the plan, even if i deviate & hang onto some :)

Glenn said...

Brotherhood is a great show! It is everything The Sopranos should have been. I can't wait for season 2!

T.C. in Orange County said...

X, as an avid reader I have some input on alot of questions you get related to setups.

I think many of the people who come here also read other blogs like the Dummy Trades. They look at the setups in that context, without knowing how you really trade. Yes, you outline it in all of your posts and FAQ, but many do not take the time to read those.

Dummy Trades tend to be entered on narrow range bars on 30-minute charts. Alot of your trades are the same, but what people don't realize is you don't blindly enter based on a narrow range bar. You enter based on candle patterns (hammers, offsetting bars, etc.) and at points of support and resistance and when those levels are broken (Fibs, opening range high/low, moving averages). It just so happens that many of your entries are narrow range bars. But again, you don't just blindly enter based on them.

Someone else said it is the little things. I think you are much more accurate and the little things are the reason why. My suggestion is to read all of your posts on how you trade, viewer mail, and look at all the charts. It will start to become clear.

Thanks for a great blog. I am still not sure why you share so freely, but I appreciate it.