The Basics of Trading

This is a discussion on The Basics of Trading within the First Steps forums, part of the Reception category; Hi there I am absolutely new, I have some stock which had been working fine, It was some kinda fall ...

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Old Oct 31, 2008, 8:54am   #561
 
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Joined Oct 2008
Hi there I am absolutely new, I have some stock which had been working fine, It was some kinda fall in the middle of this year, I think I bought the part while this was going up and suddenly it started declining, you see the chart while I purchased at around 820 marks now it is closer to 700 mark, what do you say about that?

Click the image to open in full size.Click the image to open in full size.

Thanks this is my first post so laugh as much as you can ------------
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Old Nov 2, 2008, 11:40pm   #562
Joined Nov 2007
I've been following AAL for the last week to get a feel for the psychological factors as well as the Support/Resistance, Risk/Reward ratio and candlesticks.

I suggest that all novices perform this exercise. It was my version of FTSEbeater's article 3.
T2W Day Trading & Forex Community

It's a shame I didn't trade it.
Here are my thoughts on the week's action
aal-10253108.bmp

First question:
Where does one draw the trendline to its best most accurate direction?

First analysis 26Oct08

Possible risk profile
target 1800
enter 1182
stop 1095

Reward points 619
Risk 87
R/R 7.1 : 1

support test at 1100
resistance test at 1800
resistance test at 1610 4.9:1 (another possible profile)

support could become resistance as well so

I'm going to wait and see what happens tomorrow to see if the bump up continues.


27Oct08

Change 6.0
Change 0.5%
Current 1188.0
Current bid 1186.0
Offer 1188.0
High 1207.0
Low 1082.0
Open1160.0
Volume 7,467,201

It's moved up in price since Friday.

Had I entered the trade today, I would have been stopped out.
I am waiting


2nd Question:
How do I quantify a stop "just under the support line" that keeps me from being caught in the freeze out?

3rd Question:
What will be the rule for trailing stops?


28Oct08
Change -42.0
Change -3.5%
Current 1158.0
Bid 1157.0
Offer 1158.0
High 1277.0
Low 1138.0
Open 1264.0
Volume 13,162,076

So far so good the low ended at a higher price. Entered at 1188.
Stop at 1095.



29Oct08
Change 195.0
Change 16.6%
Current 1370.0
Bid 1369.0
Offer 1371.0
High 1376.0
Low 1234.0
Open 1244.0
Volume 11,234,064

It's still moving upwards.

I am going to continue with my original target as this is an exercise of mental learning.
I will move the stop up to 1170.


30Oct08


Change 62.0
Change .5%
Current 1442.0
Bid 1442.0
Offer 1444.0
High 1508.0
Low 1402.0
Open 1480.0
Volume 8,882,053

I will still see how it fairs to the 1600 resistance, I would put a stop at 1242. I need to continue my training on candlestick indicators.

31Oct08

Change 107.0
Change 7.4%
Current 1549.0
Bid 1548.0
Offer 1550.0
High 1551.0
Low 1379.0
Open 1425.0
Volume 6,283,855

This would be the place where an exit strategy comes into effect:

5th Question:
What is my exit strategy?


If I was trading this I would exit at this point as I've made my % profit and I've been in the trade for 4 days.
but as this is a learning experience, I will continue to watch it until the reversal to see if it hits the 1800 resistance of my original target.
I would place a stop at 1375.


3Nov08
Move my stop up to 1551.
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Old Nov 3, 2008, 9:18am   #563
 
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hi every one, i m Chandrakant from Mimbai. Trading in mkt since last 20 yrs
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Old Nov 11, 2008, 5:12pm   #564
 
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Joined Nov 2008
hi guys!
newbie here from sunny kettering hoping to get in the trading game. I am finding this most interesting... just deciding the right time to take the plunge. I would welcome any advice from you seasoned hands. By the way is it possible to get diary of all companies dates for going ex dividened??
cheers all

tim
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Old Nov 11, 2008, 5:24pm   #565
 
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Joined Oct 2008
Quote:
Originally Posted by Hall_Marked View Post
hi guys!
newbie here from sunny kettering hoping to get in the trading game. I am finding this most interesting... just deciding the right time to take the plunge. I would welcome any advice from you seasoned hands. By the way is it possible to get diary of all companies dates for going ex dividened??
cheers all

tim

Some ex-dividend dates here for free (click on 'dividend dates'): UK Stock Challenge

I'm not sure how accurate they are as i don't use this in my trading. If you do a search in google there will be links to lots of places where you can pay to receive the data (more accurate and reliable than the above website i imagine).
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Old Nov 11, 2008, 5:55pm   #566
 
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Many thanks for those, much appreciated.... will think of you when I buy my yacht!!
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Old Nov 19, 2008, 5:29am   #567
 
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Joined Nov 2008
Smile babyfresh

greetings cyberbeings
I am currently located in the Peruvian Amazon and have determined to learn a thing or two about trading so as to make it possible to be a part time expat (Im a caligirl). look forward to receiving your wisdom and generating some of my own...
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Old Nov 20, 2008, 8:28pm   #568
Joined Nov 2008
Thumbs up Great stuff

FTSE beater, you rock my world!
Are u sure u don't have professional teaching experience?
for a newbie like me, your comments-and the replies from the others in the forum- are very helpful.
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Old Nov 21, 2008, 4:09pm   #569
 
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Joined Nov 2008
WOW...there are many good traders around.... wish i could trade like you all..
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Looking for Best Traders to trade my personal fund, USD 10,000 per account. 3 accounts available!

Interested, please send past performance and forex trading resume to reds.torres@gmail.com
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Old Nov 22, 2008, 9:52pm   #570
Joined Mar 2008
Hi Guys, If you need any help with your trading i have wrote a free e-book, that will show you where to go and what the most important topics are that you need to research about, its in a PDF....nothing too amazing but i am a forex trader now, but i started off like all of you guys, so i know the best places to go that are free.....and you can honestly use the free stuff to make you money in this game!...anyway, if anyone would like to grab a copy, just skype me...my id is Jarratt2, and i can send it to you....im not a fan of getting bogged down in forums...but i do like to help if i can!!
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