Both HD and SBUX are very liquid BB stocks, normal trading volume and and trading range , very predictable how they trade, pretty much walk in the park,
Was it really easy ? Considering the markets are oversold , it was not that much of a 100% sure trading, ( it never is ) it was not too comfortable knowing the markets are due for a bounce which was the only thing I actually twitted today and was again right on the money Click to see my twitt here
I'm not being a prophet but when you know the odds for something to happen are great , then expect it to happen.
When HD opened with pretty big gap down, I initially wanted to go long on the 2 min break out , but the spread was over 50c !! SO abandoned the idea, and soo after the spread narrowed to 3-6 pennies and it gave me short entry below the 2 min low. The drop did not have follow through immediately, it pulled back up , and here I come with building my position on the way up. It feels great when I size properly and the move against me is actually not only painless but a pleasure to be able to add some bigger size.
The rest of it is all on my charted snap shots.
HD the green thick line
I draw at open as major area of resistance and risk limitation in case things went north
HD the initial short below 2 min break down
HD the add ons with risk above the green line
HD covering into the dive
HD covering some more and trailing for exit
HD trailing the exit is great when I catch a nice trend
SBUX was almost identical, and here comes the question I twitted: Do I really need many symbols to trade each day ? Why not focus on one and milk it all the way?!?
In general YES i need to LOOK at the other symbols , just to see if they are all playing along in similar fashion, or if many of them are divergent..
Hope markets give nice bounce up , make the shorting easier. Also if they bounce up nicely they may give nice short swing opportunities, but I'm bored with swing and I seldom take some swing positions like NBIX . You may want to follow @Gregvasilev1 who will be happy to explain to you any questions you may have regarding swing , he is my Millionaire Challenge student LOL
NBIX swing short 50.85 at the 20 sma touch down on daily
Salute
AngelDan@DaChopa
Great trade in HD!
ReplyDeleteHello - I took a daytrade short in BURL but took a small loss on Friday. I was wondering if you could give me your analysis/thoughts on it and tell me how you would have traded it? Thanks!
ReplyDeleteThe good news is: as a novice expect to lose, and having a small loss is a win… fairly cheap lesson learned. Losing small is the key to stay in business long enough to have a chance to learn. Great that you did only this trade, so it will stay in your memory. Write it down, journal it.
Delete1) Markets were up big at open. Shorting was not easy.
I chose CREE and FSLR because they had very distinctive overextension: three days UP in a row ABOVE PDH and by that I automatically scratched off BURL. Besides the fact that we talked about her the day before as potential short candidate.
The high probability short entry on BURL was going to be below the PDL which is VERY FINE DEFINED SUPPORT, area $50.50.
Shorting above it is like trying to break concrete floor all alone without any help. Let the big boys break it first, and if they do, then you go short too. Why forcefully wasting your energy against it?
ALWAYS LOOK FOR PATH OF LEAST RESISTANCE
FIRST ON BIGGER TIME FRAME then narrow down to lower time frames.
MEMORIZE THIS ABOVE !
My bad I didn’t tell you this when marked opened, but remember: better go through all the losing scenarios as earlier as possible with as less size as possible.
Regardless, you could have still made money on BURL BY SHORTING.
I know this is in total hindsight. I did see BURL how was trading and I did see it had pretty big spread.
The bad spread automatically reduces my interest to trade it. However that does not mean it is not tradeable, especially with smaller size.
This is how:
You would short the pops, meaning whenever it runs up 1/10th of its ATR you short at ASK. You place your sell order ABOVE THE MARKET , meaning before the price even gets there. I know at first thought this may feel uncomfortable. But by doing the comfortable day-trades most people (98 %) lose
After you get filled, the very moment you get filled, you place your order to cover 1/10th ATR below your fill, this time placing order again ahead , below the market, to BUY AT THE BID lower 1/10th ATR from your filled price.
This is how you DO NOT CHASE THE STOCK buying at ask or selling the bid especially when the spread is bad. Think about it: who is on the other side accommodating your order to buy at the ask or sell at the bid, when the spread is large?
Now, look at the chart, find every bottom and calculate what is 1/10th ATR above the bottoms.
Those are the areas where you needed to short ( the pops) and cover 1/10th ATR below.
If you did that, what is the worst thing that could have happened? To take a loss just as you actually did. But look at what would have happened and how many trades making 15 -20 c you would have had, BEFORE you would have taken a loss?
This is how many times you make profits of more cents then the range of the stock for that day, even if you are wrong on the trend. Stocks like BURL more often trade in choppy movements which are possible to anticipate and scalp them for some nice gains.
I hope this helps
Ticking was always my matter of concirn & now you made is easy.
ReplyDeleteThank YOu for Sharing ;
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