took a big loss in NEWN today - far bigger than I should.
What did I learn?
NEWN has no institutional support, so I never should have bought to begin with. Today the stock broke down on heavy volume... but my position was too large so the loss was bad. It closed near the lows. Also - it's a China name and those stocks are just too full of dubious people to be safe. Otherwise, it really wasn't a bad day.
Tuesday, January 11, 2011
Monday, January 10, 2011
can't stop this market:
It's difficult to stay long in this market but it's difficult to short too.
Far too much strength. The CCME gapped up today but closed much lower -- always good to take profits on choppy names.
I need to develop the patience necessary to wait for the right set up. The solar sector has finally caught fire. I bought AEIS to participate.
http://stockcharts.com/h-sc/ui?s=AEIS&p=D&yr=1&mn=0&dy=0&id=p21731511329&a=220334771
Far too much strength. The CCME gapped up today but closed much lower -- always good to take profits on choppy names.
I need to develop the patience necessary to wait for the right set up. The solar sector has finally caught fire. I bought AEIS to participate.
http://stockcharts.com/h-sc/ui?s=AEIS&p=D&yr=1&mn=0&dy=0&id=p21731511329&a=220334771
Friday, January 7, 2011
ups and downs
Well,
there was good and bad today. My best idea, CCME paid off and I decided to take all the profits and raise cash as the markets began to tank. The close was much stronger than I thought... but then -- that's nothing new.
I decided to listen to the indexes and play defense... raising cash on the extended market. The last 3 candles are identical to the April highs. So that was what really got me defensive. If it plays out the same way, it'll be a brilliant call. Most ppl are not defensive yet.. So front-running a panic may save the day. Either way - I can daytrade strength. I just don't want to hold much here until we get a correction.
there was good and bad today. My best idea, CCME paid off and I decided to take all the profits and raise cash as the markets began to tank. The close was much stronger than I thought... but then -- that's nothing new.
I decided to listen to the indexes and play defense... raising cash on the extended market. The last 3 candles are identical to the April highs. So that was what really got me defensive. If it plays out the same way, it'll be a brilliant call. Most ppl are not defensive yet.. So front-running a panic may save the day. Either way - I can daytrade strength. I just don't want to hold much here until we get a correction.
Thursday, January 6, 2011
fear
fear is a nemesis.
I make the right trade... but taking profits too early is a big drag on performance. Patience with winners is critical.
Yesterday the market started weak but immediately turned very bullish. No reason to sell when risk is properly managed. Sometimes there will be a drawdown. If it's managed, it's managed. Trust your research and yourself a little more in 2011. The market speaks in price action and volume. Listen to the markets, not your feelings.
I make the right trade... but taking profits too early is a big drag on performance. Patience with winners is critical.
Yesterday the market started weak but immediately turned very bullish. No reason to sell when risk is properly managed. Sometimes there will be a drawdown. If it's managed, it's managed. Trust your research and yourself a little more in 2011. The market speaks in price action and volume. Listen to the markets, not your feelings.
Tuesday, January 4, 2011
difficulties
Attempted a few daytrades to no avail. The market was very weak and I did not pick up it fast enough as the open slipped quickly to red.
A trade in TSL was entered too early -- and it was 2 cents from stop out but I managed to exit for slight gain. SKX was traded twice - ended up losing $20 overall.
When the market is weak... it pays to be very patient. Two positions were stopped out as well. I guess that's how it goes. I decided to bottomfish WDC and that worked for managed account.
I should have focused on obvious runner SHZ or MCP -- the vol. was strong and both had big runs after setting up. I do not like the names but that's just me being judgemental. The market likes what it likes. And there's a reason drek rises. Value names SKX and WDC were punished. It's not a just market... it's just doing what it does. For a daytrade, MCP was strong and SKX was weak. That's all you can say. Whether you accept it or not, this is what is. I did fortunately sell one position on the gap up so I had some gains for the day but paper losses overall.
A trade in TSL was entered too early -- and it was 2 cents from stop out but I managed to exit for slight gain. SKX was traded twice - ended up losing $20 overall.
When the market is weak... it pays to be very patient. Two positions were stopped out as well. I guess that's how it goes. I decided to bottomfish WDC and that worked for managed account.
I should have focused on obvious runner SHZ or MCP -- the vol. was strong and both had big runs after setting up. I do not like the names but that's just me being judgemental. The market likes what it likes. And there's a reason drek rises. Value names SKX and WDC were punished. It's not a just market... it's just doing what it does. For a daytrade, MCP was strong and SKX was weak. That's all you can say. Whether you accept it or not, this is what is. I did fortunately sell one position on the gap up so I had some gains for the day but paper losses overall.
Monday, January 3, 2011
Good Start
A lot of stocks I've been holding began breaking out today.
I'm glad I've been patient. I sold a few stocks that ripped that I felt were extended. I probably should have just held. Now I'm out of them. However, the ones I sold mostly finished lower. It's okay to take profits.
I bought a few new positions and I feel good in that I kept the positions small and I know exactly how much is at risk. I won't let them spin out of control. The market is extended but the action is strong in many individual names.
I made a few daytrades in TZA which were pointless. Shorting is not my strength. Or rather, the market was way too strong... and that ticker is very tricky -- so avoid because the swings are too volatile. Make the easy trade always or do nothing.
I'm glad I've been patient. I sold a few stocks that ripped that I felt were extended. I probably should have just held. Now I'm out of them. However, the ones I sold mostly finished lower. It's okay to take profits.
I bought a few new positions and I feel good in that I kept the positions small and I know exactly how much is at risk. I won't let them spin out of control. The market is extended but the action is strong in many individual names.
I made a few daytrades in TZA which were pointless. Shorting is not my strength. Or rather, the market was way too strong... and that ticker is very tricky -- so avoid because the swings are too volatile. Make the easy trade always or do nothing.
Sunday, January 2, 2011
four strategies for 2011
1. 20 day MA bowl: This is an entry as the 20 day MA carves out a bowl pattern, often in a value play. The bowl represents a basing/accumulation period that will lead to a long swing or a quick stop as the 20 day MA is broken. These require a lot of patience.
2. Trendline entry. When a clear trendline develops (3 touches), buy on the trendline, especially if volume is light. Looking for candlestick confirmation. Exit is top of the channel -- since chances are this stock is not ready to break out. Trendline is often not connected with moving averages, usually below them).
3. Breakout of trendline. Simply entering on a breakout. Must occur with HIGH VOLUME. Good for daytrades. Stock should have news/catalyst and/or be in strong sector. Works best with high institutional participation. These stocks can and often will be 'expensive'. Ignore valuation. Price action only.
4. Intraday / short term swing 3 bump pattern. Often a strong stock having a bad day - or taken down by shorts. The entry will occur after 2 higher lows have formed. Entry on the 3rd swing -- hopefully the 3rd higher low. Stops will usually be no more than .20 from entry. Position size can be large for daytrade, smaller if holding overnight. Works best if pattern forms near previous support area.
2. Trendline entry. When a clear trendline develops (3 touches), buy on the trendline, especially if volume is light. Looking for candlestick confirmation. Exit is top of the channel -- since chances are this stock is not ready to break out. Trendline is often not connected with moving averages, usually below them).
3. Breakout of trendline. Simply entering on a breakout. Must occur with HIGH VOLUME. Good for daytrades. Stock should have news/catalyst and/or be in strong sector. Works best with high institutional participation. These stocks can and often will be 'expensive'. Ignore valuation. Price action only.
4. Intraday / short term swing 3 bump pattern. Often a strong stock having a bad day - or taken down by shorts. The entry will occur after 2 higher lows have formed. Entry on the 3rd swing -- hopefully the 3rd higher low. Stops will usually be no more than .20 from entry. Position size can be large for daytrade, smaller if holding overnight. Works best if pattern forms near previous support area.
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