Trading Big Boards Concept Simplified $AAPL $ABX

I alerted  long ABX here and long AAPL here  for a reason.
Preceding to those alerts,  I mentioned about the SPY futures ( E-mini) very early pre market  alerted here. SPY futures  were testing very important daily pivot level above the 50sma, with  pin bar test and  held the 50 sma,  well and above the 20 sma, quite a  bullish environment on short term outlook.

Few reasons why I like the big boards over the penny stocks :
1) Extremely huge average volume meaning  very liquid to trade any size I want, any time,  any day and almost any BB stock. ( that's why I don't bother much with scanning and finding the perfect Holly Grail Stock to trade)
2) Quite easier to see and predict the general bias based on few very simple technical parameters mentioned many time in my prior blog posts.

I will  repeat them today again, since I know the pain and suffering many new traders go through. Been there done it all and I know how it hurts.


Why ABX long?
Look at the charts:  Daily,  5 min ,  and 2 min

ABX I alerted it before this was created

ABX the trigger for long

ABX explained 

Why AAPL long ?
Same reasons as ABX

AAPL the long as alerted

AAPL

Today I traded my buddy's acct who was begging me to show him how it is done and who always wanted to make $2,000 per day  with $30,000 acct and $120,000 Buying Power. ( so there are other trades in the PnL tiny scalps but they DO  ADD at the end of the day ) .  BTW he lost over $10, 000 trying to do so in a very short time.  

Is it possible to make $2,000 to $3.000 a day with $120 ,000 BP? Theoretically yes!!! , and I have done it many times but on long run I kept being a loser just like he went down.  I decided to stop the insanity and to be realistic. Spent long long time trading small, very small.  Making $100 to $200 a day with $120,000 BP is what I firmly believe in ..Everything else is LUCK  and that is my opinion. There might be traders there making a killing with $30,000 and I will be glad to follow them on daily basis and very closely to  see what exactly they do, but I doubt there are any , and if there are any,  their luck will run out eventually, This is just me , but hey what do I know ?!?.

I know one thing only : THE LUCK DOES NOT RUN INTO MY VEINS.

I can also say: beating the sharks for $100 each and every day with $120k BP is HUUGE !!!

I may be off  from twitter for a while,  helping my buddy to put him on the right track.

He wants to quit his day job so badly LOL

Have a great week all :) 

@DaChopa

Red Day $WMT

WMT
This was a good losing trade, per plan, without any improvisations to bail out by forcing trades.

WMT

Markets opened in green,  were pretty strong.

WMT gave nice short at 2 min and 5 min opening range break down short , but having the green markets I did not go for the short.

Watched the dive all the way down to the whole number 67.00 into the 200 sma on 5 min. so took the long in anticipation to re-trace 50% into the big opening  drop. 

But it was hammered down by sellers on any attempt to go above 67.20.

The 20 sma cought up with the price ( the price did not bounce to catch up with the 20 sma) so it gave a good short which I did not want to take just because it already had quite a big over-extension of 1 ATR. So not big deal there will another trading day.  I'd rather have these controllable losing days within the normal limits then the huge  PnL swings. 

WMT 5 min risk level 

WMT anticipation 50% entrancement bounce 

WMT creating higher lows

WMT   eod
Once the 20 sma was touching the price, it was a great short set up but simply I did not take it because it was already overextended, SPY was green, so I was cautions not to get cought in a squeeze.

SPY all day in green Will 195 hold ?

Have a great weekend 

@DaChopa

Green day FSLR WMT

Somehow I managed to take a loss on WMT , got too greedy adding more into the short winner that was up nicely

WMT

I shorted at 67.80 or so , after the field attempt to go above 68.00 daily pivot

Never took any profit and shorted more after the bounce up and had to take a loos

WMT

. 

FSLR was a text book long

I was looking of for gap ups to short but happen to see FSLR sitting nicely on   a lunch bad

1. Was up above PDC
2. above 200 sma
3. above rising 20 sma
4. 5 lower highs of 5 min candles into the rising 20 sma
5.  this is Long with size and stop below the 5 min candle
6. Had room to give 1:2  R:R to the daily pivot high 72.00 
7. The short was right below the daily pivot 72.00 break below the 5 min candle with stop above 72.00 HOD   this time I took profit 

FSL

Have a nice weekend 

@DaChopa

Shorting Against Daily Resistance Green Day TGT

TGT

TGT
Even though it bounced of the 200 SMA and showed strength above the 20sma  above PDC, I did not want to go long since the markets were all in red. It made full ATR in the first Half an Hour , so I was looking to short against daily resistance 76.00 with conviction it will be hard to break above today's high..
Hammered the pops sold at ask , placed orders to cover at around 75.00.

Then there was some news , or HFT's attacks happen, TGT  went wild but having the orders placed AHEAD with A PLAN it was just perfect play.

TGT perfect 50% retracement

TGT some of the sales 

TGT some of the covers

SPY   eod

TGT eod

Salute 

@DaChopa

One Stock, One Set Up, One Green Day FB

FB

I twitted FB long here and here because It had a very clean price action , which  in no way means it always works but in my opinion is quite better odds going long rather then short.

1. Coming out of daily congestion above all SMAs on daily 
2. Above the SMAs on intra day 
3. Above PDC 104.50 and PDH 105.00

Strategy No. 1 with a tight 2 min candle stop :

Just reading the highs of the 2 min candles it triggered long after the second 2 min candle with  stop below the same candle. This is when trader would get with size immediately ( which would not allow to built if it   drops towards 105.00 because size will cause  too big of a draw down)

Strategy No. 2 with wide stop below PDC or PDH  :  

If was drooping towards 105.00 building a long on the way down , but starting with small partial size that trader can calculate according to own risk tolerance if the price went in stop loss territory.

FB 2 min long trigger  risk below the 2 min 

FB  risk reward 1:2

FB 5 min chart 

This was the second long entry on break of of 5 min  candle high after 3 candles LOWER HIGHS pull back. 

FB 5 min take profit area 1:2 R:R

FB eod   5min

Have a great week 

@DaChopa

Updated Green Day QCOM to "What do you see here ? SSO SPY"

SSO SPY and many other stocks doing the same 

SSO

1.  PDC resistance
2. 20 SMA resistance
3. 200 SMA resistance
4. Previous day congestion resistance 

Where is path of least resistance?
Build short into the move up with stop above PDH
Reading the candles near the "stop area " is crucial to recognize fake stop out.

Have happy Friday

SSO 5 min

SSO 2 min

SSO broke the 2 min low instead of moving up from the open.

I was expecting to try to fill the gap off the gate and short into the 4 resistances explained above.

However it made an  initial drop and created  double bottom then moved  up into the 4 resistances later in the day..That was no play for me .

I set on my hands and spotted QCOM moving nicely up tempting to go long, but I just could not do that after 4-5 days up

QCOM

The reason for this short was failure to hold PDH , daily over-extension,49.50 round number as resistance   

QCOM 5 min 

I was anticipating a large probable drop due to its overextended daily chart, and I  really wanted to drop down to the 200 sma and HAVE A HOME RUN . I had a great short entry at  49.16 great risk reward,  took some off with profit but left most of rest  at break even and of course NO HOME RUN. I was sooo sure it will roll over to 48.75...then to 48.50... I totally ignored 48.80 daily pivot at which by just simple reading of the price action which was  taking the high of the last red candle, I should have closed the entire position, but got greedy.

So now we know that 48.80 has been tested , will trade that line on Monday 

Have a great weekend
@DaChopa

Green Day QQQ FB and update to the "Plan for Feb 18 $SPY"

This was written last night:
SPY
This is what we see now.

SPY  2 min 

SPY is near by major resistance 195.00 . Let's see where it will be in the PM.. This will be related to any Big Board Stock not necessarily only to trading the SPY or SSO.  

Scenarios:

 1) SPY gaps down we will have PDC,  200 sma,  20 sma,  Prev day congestion area of resistance above. This will be short build up into the move up towards those levels and stop above PDH 

2) Opens gap up : it can be right into 195 resistance, so  2 min candle open break down,  short the break stop above the 2 min candle. I would take 1:2 gain but will definitely leave some in case it crushes way lower 

3) Opens above PDC,  above 200 sma, above  20 sma. That will be long,  but I will not go long it is just me, it may go 10 or more days up we never know that , but after 3 days up I feel uncomfortable going long

This is all planned based on 2 min range from the open and may change later into the day using 5 min or even 15 min candles is very possible, depending on the stock and the way it trades. 

This is my plan and who ever trades they shall know: trading is risky and nothing is guaranteed. Losses can be bigger then what you actually have in your account  , and 

YES,  YOU CAN LOSE EVERYTHING !

Salute 

@DaChopa 

**********************************************************************************************************************************

NVDA   I'd short 2 min open break down stop above  

WMT    I'd long 2 min open break out stop below

Both are far away from 20 sma

On both targets 1:2 or 1/2 of the gap and would leave some for more to maybe fill the gaps

FB coming out of channel 2 min open break out for long, It is above

1)  PDC 

2) above 20 sma 

3) above 200 sma on 2 min chart 

They all act as support will not fight them if trades below and WILL cut losses in such case 

FB  at 105.70 mail line to trade long above 2 min break 

What really can change all this is the range of the 2 min opening candles , they may be too big, but we ll see

**********************************************************************************************************************************

THIS WAS WRITTEN TODAY :

UPDATE DURING TRADING HOURS :

NONE of the planed set ups triggered ..frustrating right ? None of the 2 min opening candles were broken in the direction I planned to trade 

FB Seeing it on daily there were possibilities to come out of the daily channel and move up, being a laggard in this crazy market rallying with gaps up 3 days in a row (SPY). So why not trade  FB long?

The opening 2 min candle broke down, falling right into the previous day  close, the  20sma  and above the 200sma, First 2 min candle break above was a trigger long 105.30  all twitted ahead of time CLICK HERE. Risk below the same 2 min candle twitted HERE and FB stopped out with a 30c loss saving much bigger losses twitted HERE

Now seeing FB failing a clear long set up, did not make me feel comfortable shorting it just because it did not have many days overexertion like the QQQ. I was afraid It may come back up and start chopping which would piss me off and who knows what else I may do after. Dr. Jekyll and Mr. Hyde that's me when I trade and I bet bet many of you. I may preach all the good stuff but I may still do the dumbest things out of frustration.  

FB 2 min trigger long off of 20 sma  PDC over 200 sma

FB the failed long GOOD LOSING TRADE per plan 

FB How much the stop loss saved me ? 

GOOD TRADE !

QQQ

However failing FB long gave me some confidence to short QQQ. There were many other stocks doing similar thing but it doesn't really matter,  all it matters is to make few bucks from any symbol. SPY rolled over the 200 and 20 after so many days above them AAPL was weak. So why even bother be in so many trades , I used to do that but at the end of day it doesn't matter to me. 

QQQ droped below the 20 SMA  and risk above 102.50 was something I could handle and I was in totally in peace if the 102.50 got hit. That would be pretty good sign for me to give it up today and I promised myself I will not trade today any more  if it gets hit.

Twitted HERE the short entries 

Twitted HERE why I was shorting QQQ

Twitted HERE the confidence from SPY roiling over 

QQQ building short on the way up with stop 102.50

QQQ covering  for profit

I wanted to have 1:4 risk reward , but was just dropping too slowly and after taking half off with  36 c gain which is more then the 25c I risked.  I covered the rest on the 5 min candle break ou 101.86 or so.

I mentioned in this TWIT HERE the QQQ ATR. One of the reasons why I like the Big Boards is that have very well known range  THE ATR google it HERE . They are not like many penny stocks, or low floats who can trade on any quadruple or more range range at any time on soem news , or pump or so  I am not saying it is impossible to trade them, but I find great comfort in equation where I have one variable well known:  the ATR, and that is pretty much firm number on the big cap stocks

I built 2,000 shares QQQ  short average 102.26 covered  1,000 at 101.90 and 1000 at 101.86.

That was all for today.

This is not easy ,but do not feel bad if you had red day. I've had years and years of pain losing. I bet you have not lost more then me.

Find one set up you may feel comfortable with and try to do only that one for several months with very small size. Trading can not be though or learned by reading any book or by reading my journal. It can be learned only by doing it .Know you will lose , so do it small before you see, you feel and you know you can make green days consistently with "your eyes closed"  

Too bad none of the 2 min open today triggered so I could not show you  how you can end the day in 30 min green and close the shop till the next day. 

Salute 

@DaChopa

Red Day taking some beating from EXPE

EXPE 

Now this is great "good losing trade"  to elaborate
It might get confusing why I took short when it opened above the PDC above the 20 SMA and the 200 SMA.
The markets have been running with gaps ( SPY) 3 days in a row. EXPE  had  gap up with enough distance to travel back to 20 sma which would just made my day . As I twitted,  the ideal entry was narrow 2 min opening candle and short at the break below with  risk above it.
The opening candle was not broken below.
The second candle had a nice wick rejecting the 110 level round number. Those were  my short entries lows 109s and high 108s.  The main level to watch was the daily pivot 109.17 area from Jan 22. weather will hold or not

EXPE shorting the wick 2 min bar

Since this was  the 3rd day SPY gaping up,  going LONG on such occasion for me is not the best option  because more often I lost my shirt doing that rather then making any consistent gains on such chasing longs.
It went back up above 109.17 and my reference  point for risk was HOD so I built some more shorts towards the HOD with mental stop above it.

EXPE avg 109.50

The 2 min red candle hit the HOD but I needed a confirmation to cover and take the loss. 

Having the entire plan ahead of time is crucial so  I have something to follow  and execute without thinking 

The plan for exit: The next  2 min candle could  break below it, which would keep me short with target LOD and avg short 109.50s, However it broke the high and I covered. On some rare occasions I may flip the trade long, but just because the market has been already overextend  I obey my rule not to chase it.  Stopping out was the right thing to do, and this trade goes in the book of  "GOOD LOSING TRADES"

Had it gone to LOD or even lower,  a gain of  $2,000 to $3,000 winner was gonna give me a nice Green Day  and would have made many "followers happy" reading about it. However it is just amazing how all my post about Red Days  are visited 4  times less then the ones titled "Green Day". No wander 90% of traders lose money  :) 

It is amazing how many people are more excited on wining trades rather then losing, with no understanding that once you are in a  winning trade there is really NOTHING you can do, you may take more or less profit or so...  Trading is all about what you do when you lose,  how you take your loses, weather you take your loses or get stubborn,  and what you do right after you take a  loss. 

Here is what EXPE did after I cut my loss:

EXPE the good losing trade 2 min chart

EXPE eod  5 min chart 

Note the pivot 109.17 with double bottom and narrow 5 min candle taken out for long trade but it was just not for me 

Salute 

@DaChopa

My Favorite Short Set Up

LVS
I'd rather write a post for a losing trade(s) then a winner, but ...there hasn't been any lately ..

LVS was one of my favorite short set ups , explained many times in this blog.  LVS was my choice over WYNN simply because the spread was much better.
I took more aggressive entry here throwing offers all over 45.00 a whole number , which  is major daily resistance after 2  day run from below $40.  For a novice I'd suggest to wait for 2 min candle break of the low and stop above it. Scale down 1:1 risk reward and cover rest at first 2 min high break out or at the support 44.00 which is almost 1:3 R:R. Seeing it at 44 is no brainier COVER simply because it is PDC and previous day congestion area acting as strong support.

LVS  2 min fluid candles from the open 

I explained in this previous post CLICK HERE how more often then not , the first half hour gives me less choppiness and nice fluid moves on 2 min candles 

Later in the day I tend to use 5 min and 15 min charts
This is COF 15 min chart that did not trigger short entry, since the 15 min candle low was not violated

COF 15min  no trigger short 

COF why bother guessing when can read and act upon price action ?!?

And here is the violation of the first 15 min candle low for nice R;R of 1: 2

COF 15 min 

Salute 

@DaChopa