Friday, 9 January 2009

Trades 09/Jan/2009

Watchlist:
APOL,BP,BRCM,COH,CVS,DRYS,EBS,ESI,ESRX,
ETR,GG,GNK,SYK,WAG

Work committments today meant my market time was limited. During the time I did have, only one trade to blog about.

ESI (gap up) (Fade)

Although the first candle is bullish, this is offset mostly by the bearish 2nd. We then trend down past the ema on two weak candles. The 4th crosses OR low before being offset by the 5th. At this point we then get sideways action as the $100 level is being fought over.
However we can't hold the OR over successively narrowing candles, this is reason for short.

Things looked promising after entry as we did fall nicely, but it was still sideways choppy action when there was no follow thru. I didn't have time to watch markets into last session, so I just closed my position for a minor gain around 2 hours before close which meant I missed the nice fall at the end of the day.

-----Fibs and R Values---------------------

----------Trades---------------------------

6 comments:

AY said...

Hi TA,
I was wondering if you could go over MT's cart today (15min). I see 2 possib early day trades. 1 off the 4th candle (a bit far from the 5ema) and the 2nd off the weak 7th candle. However, both didn't work and I was wondering what your opinion is.
In hindsight I'd say that 2 main factors were against this trade: 1) looking at the 60min chart it is getting clear that the "real" setup is a break of 2700-26.90 below to close the gap. 2) the vol on the 7th candle is weak relatively to the green one b4.

Thx and have a good weekend
A

Z said...

Hi Am,

I was wondering do you use any leverage through your broker? I am trying to understand the pro's and con's of using leverage with day trade, but currently couldn't find any useful info from the internet. Is there a hefty fee charged for using borrowed money?

Z

TraderAm said...

AY.

The main thing to say is that for me I wouldn't have traded this since first candle was in previous day's hi-low range.

But other than that, 4th and 7th were valid trades in terms of candle patterns. I don't look at 60min charts or volume either unless it is very extreme. So neither would have entered into my thinking.

TraderAm said...

Z.

Standard leverage thru IB of 4 to 1. So $25,000 in your account means $100,000 buying power.

OONR7 said...

ta: did you notice the decreased buying power. It's now about 3.2 to 1. They did that a couple of months ago but I realized last month. Called them up and they said the implemented it across the board due to the crisis at the time. I never received any kind of notification. In fact, I called them because I thought there was just an error in my buying power. Hope they increase it again.

TraderAm said...

oonr7.
Hadn't noticed that.
Thanks.