AAUK,ABX,ACI,APC,BTU,CALM,CHL,CRM,DKS,ECA,FRO,GG,GME, HBC,HK,IBN,KGC,M,NBR,NEM,NOV,PBR,PDCO,PLCE,RIO,SNPA,XTO
Quite a few trades today and overall a good day for profits, despite a couple of losers.
ACI (gap up)
We trend up past the OR moving up nicely with ema. The 8th and 9th provide the pullback we are looking for. The 9th is NR7 and NR3 off the ema and is our long trigger.
Entry: 56.20 Stop: 55.70
Fib Ext: 57.25
1R=56.70 2R=57.20 3R=57.70
The price moves up with ema after entry and we take partial at 2R (which is also 1$ gain) then rest is closed near end of day just under 1R. Nice trending stock with good profits.
NBR (gap up)
We retrace after gap up, but find support at the previous day's high on successive candles. We then begin trending up with ema as support, forming a saucer bottom. The 9th is a green NR7, NR3 and closes strong above the ema. This is our long trigger.
Entry: 35.70 Stop: 35.45
Fib Ext: 37.33
1R=35.95 2R=36.20 3R=36.45
The price moves in our favour after entry as we trend up past 1R. We take partial at 2R which is also near the OR high. The rest of our position is closed at 3R since the Fib was still a fair distance away and we had moved up quite a bit already from the lows. A very good gainer from a newer pattern that I don't use that often, but worked like a dream today.
KGC (gap up)
We trend up past the OR moving up nicely. The 7th provides the pullback we are looking for. It is closing strong off the ema and is our long trigger.
Entry: 17.41 Stop: 17.18
Fib Ext: 17.78
1R=17.64 2R=17.87 3R=18.10
The price initially moves up with ema after entry, but then never follows thru. It comes back and stops us out for a loss.
HBC (gap down)
We trend up initally before bouncingoff previous day's low. We trend down with ema as the stock weakens. The 7th provides the pullback we are looking for. It is closing weak off the ema and is NR7 and NR3. This is our short trigger.
Entry: 75.70 Stop: 76.06
Fib Ext: 74.42
1R=75.35 2R=75.00 3R=74.65
The price initially moves down nicely, but then never follows thru. It comes back and stops us out for a loss.
DKS (gap up)
First candle is strong. We then retrace after testing the OR on 3rd candle, but find support at the ema and begin trending up. The 8th is strong breakout of OR, off the ema and closes strong itself. This is our long trigger.
Entry: 20.50 Stop: 20.06
Fib Ext: 21.12
1R=20.94 2R=21.38 3R=21.82
The price doesn't move much after entry. But it always holds the OR, which is a good sign. We finally get the up move we are looking for right at end of day. We take partial at 2R and then near end of day at just over 1R. Took it's time this one, but a nice profit.
As mentioned above, quite a busy day. Initally it did look dicey, but keep faith with your stops and the market can reward you (sometimes...).
2 comments:
TR: Thanks for posting watch list as I was also unable to trade, but did a quick nightly review.
I have to say your money management exit strategy lessons are simply amazing: preserve capital, let the market prove me wrong, get a free ride, bank cash, and let profits run. I especially like the part about banking some cash because it does make it easier, emotionally, to hold to end of day.
In fact I was blogging with a fellow poker player and he said that this is exactly the money management techniques that professional gamblers employ.
I simply must ask: what led you to this amazing insight/discovery?
I truly believe that the key to your success is MONEY MANAGEMENT!
And thanks for sharing your thoughts and ideas. It is truly a rare gift!
Ralph
Thanks Ralph.
As you say, Money Management is key to success. I don't think that I've discovered anything new, most forums, chat rooms, courses, books etc say the same thing for many years.
Banking some cash after 2R or 1R etc is more of a psychology thing IMO. This coupled with the fact that my stop is at breakeven means I can leave the trade alone.
It's a case of finding the exit rules which I am comfortable with. For me, it was done via paper trading and live trading trial and error and reviewing my trades day in and day out.
You have to be comfortable with your exits. The way I do it will not suit everyone. E.g Others have to be monitoring their position, until it is all closed out. They want to close out on ema break etc. Whatever suits you, that is the way to go.
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