The Basics of Trading

Fluke · Feb 17, 2003, 8:01pm

Hi Mark.
I have looked at your 5 stocks and have set out my thoughts for the stops and targets.If we imagine we are in these trades.
ABF Long. Stop at 502,Target 545.
AL Short. Stop at 792,Target 648
DGE Short. Stop at 650,Target 565.
JMAT Long. Stop at 725,Target 795.
MKS Short. Stop at 318,Target 280.

I would like to see what you think Mark.

iSquared · Feb 17, 2003, 10:51pm

Mark,

Here are my attempts. My learning from this is that there are several trades here where I'd have to wait for the price to come to me. Even then there are several I would not take due to the RR issue.

I'm still undecided about the balance of anticipating a reversal from that point or waiting for some evidence. Personally I'm much more prone to wait for the latter (i.e. for a long either a higher high or a close above the previous days high (in these conditions I'll wait for the close above the previous days high for longs)).

ABF Long 530 Stop 499 Target 546 RR 0.5
AL. Short 784 Stop 801 Target 649 RR 7.9
DGE Short 569 Stop 650 Target 500 RR 0.9
Short 630 Stop 650 Target 500 RR 6.5
JMAT Long No way (no space to down trend line, no new highs/lows).
MKS Short 299 Stop 320 Target 285 RR 0.7

So of them all only AL. and the 'wait for it' DGE appeals. In both cases I'd sacrifice the RR for some movement in the direction I subsequently anticipate. the targets I've used have in the main been based on the previous high/low in the direction of the dominant trend. Target setting from a trading perspective is certainly a topic worth exploring IMO.

Cheers,

Andrew

FTSE Beater · Feb 19, 2003, 8:17pm

Hi all

I'll be hopefully running through my analysis of these shares tomorrow, so if you would like to add your analysis feel free

Fluke · Feb 20, 2003, 12:39pm

Can some one please explain the meaning of the trading expression "Covering Shorts". I understand going long or short, but am not really sure what "Cover" means.

EG. With SB To open a short position I would sell and To close it, I would buy.

iSquared · Feb 20, 2003, 12:56pm

Covering is just closing a short, to go flat rather than net long.

Skimbleshanks · Feb 20, 2003, 12:57pm

Quote:

Originally posted by Fluke
With SB To open a short position I would sell and To close it, I would buy.

therefore, you are 'covering your short'.

Covering just means closing.

Fluke · Feb 20, 2003, 1:04pm

iSquared and Skimbleshanks.

Thank you both for your prompt reply Thats cleared it up for me.

Feb 17, 2003, 8:01pm	#71
Fluke 456 Posts Joined Feb 2002	Hi Mark. I have looked at your 5 stocks and have set out my thoughts for the stops and targets.If we imagine we are in these trades. ABF Long. Stop at 502,Target 545. AL Short. Stop at 792,Target 648 DGE Short. Stop at 650,Target 565. JMAT Long. Stop at 725,Target 795. MKS Short. Stop at 318,Target 280. I would like to see what you think Mark. __________________ fluke

Feb 20, 2003, 12:39pm	#74
Fluke 456 Posts Joined Feb 2002	Can some one please explain the meaning of the trading expression "Covering Shorts". I understand going long or short, but am not really sure what "Cover" means. EG. With SB To open a short position I would sell and To close it, I would buy. __________________ fluke

Feb 20, 2003, 1:04pm	#77
Fluke 456 Posts Joined Feb 2002	iSquared and Skimbleshanks. Thank you both for your prompt reply Thats cleared it up for me. __________________ fluke

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Article: Basics of Trading: Part 1	T2W Bot	Educational Resources	32	Feb 8, 2013 11:09pm
Article: Basics of Trading: Part 3	T2W Bot	Educational Resources	13	Oct 21, 2012 1:26pm
Best Thread: The Basics of Trading	FTSE Beater	First Steps	360	Mar 23, 2011 12:37pm
Article: The Basics of Trading:Part 2	T2W Bot	Educational Resources	8	Feb 16, 2005 11:09pm

Feb 17, 2003, 10:51pm	#72
iSquared 18 Posts Joined Dec 2001	Mark, Here are my attempts. My learning from this is that there are several trades here where I'd have to wait for the price to come to me. Even then there are several I would not take due to the RR issue. I'm still undecided about the balance of anticipating a reversal from that point or waiting for some evidence. Personally I'm much more prone to wait for the latter (i.e. for a long either a higher high or a close above the previous days high (in these conditions I'll wait for the close above the previous days high for longs)). ABF Long 530 Stop 499 Target 546 RR 0.5 AL. Short 784 Stop 801 Target 649 RR 7.9 DGE Short 569 Stop 650 Target 500 RR 0.9 Short 630 Stop 650 Target 500 RR 6.5 JMAT Long No way (no space to down trend line, no new highs/lows). MKS Short 299 Stop 320 Target 285 RR 0.7 So of them all only AL. and the 'wait for it' DGE appeals. In both cases I'd sacrifice the RR for some movement in the direction I subsequently anticipate. the targets I've used have in the main been based on the previous high/low in the direction of the dominant trend. Target setting from a trading perspective is certainly a topic worth exploring IMO. Cheers, Andrew

Feb 19, 2003, 8:17pm	#73
FTSE Beater 1,518 Posts Joined Feb 2002	Hi all I'll be hopefully running through my analysis of these shares tomorrow, so if you would like to add your analysis feel free

Feb 20, 2003, 12:56pm	#75
iSquared 18 Posts Joined Dec 2001	Covering is just closing a short, to go flat rather than net long.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)