A Stock Trading News Trap?

This is a discussion on A Stock Trading News Trap? within the General Trading Chat forums, part of the Reception category; I bought into OHRP in Nov 2017. It looked like I bagged a "Golden Goose" Odd how looks can deceive ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Feb 2, 2018, 3:51pm   #1
 
Penny Picks's Avatar
Joined Jan 2018
A Stock Trading News Trap?

I bought into OHRP in Nov 2017. It looked like I bagged a "Golden Goose"

Odd how looks can deceive a trader.

On 1/5/2018 the goose that laid the golden egg pooped on my head.

The bottom dropped out because of negative news.

I don't know how to get around that sort of a problem. The only thing that really saved my sanity is that
I limit my trades to $250 USD.

I marked up a chart for this stock. (Attached)
Attached Thumbnails
ohp1.jpg  
Penny Picks is offline   Reply With Quote
Old Feb 2, 2018, 3:55pm   #2
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by Penny Picks View Post
I bought into OHRP in Nov 2017. It looked like I bagged a "Golden Goose"

Odd how looks can deceive a trader.

On 1/5/2018 the goose that laid the golden egg pooped on my head.

The bottom dropped out because of negative news.

I don't know how to get around that sort of a problem. The only thing that really saved my sanity is that
I limit my trades to $250 USD.

I marked up a chart for this stock. (Attached)
What is your strategy to get out of a trade (besides getting stopped), maybe back test ideas like selling half every time it doubles and see what works best for your type of trading...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

Count de Money number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Old Feb 2, 2018, 6:05pm   #3
 
Penny Picks's Avatar
Joined Jan 2018
Penny Picks started this thread
Quote:
Originally Posted by Quantt View Post
What is your strategy to get out of a trade (besides getting stopped), maybe back test ideas like selling half every time it doubles and see what works best for your type of trading...
There was no 'STOPPED OUT on this trade. It went from 'Super Trade" to "What Happened"?

I was waiting for a Close Trade Triangle
but one didn't show. That's not counting the one on the 5th.

This isn't the end of my trading world. I closed it out with a loss of a couple hundred bucks.

I only bet $250 USD, or so, on a trade; in the "Penny Stock" market. Most of the time I double it and
every once in awhile Big Winner. $245 >> $3200 USD.

Do I win every time? Of Course I do.

I do subscribe to Market Club. They have a trading Triangle system that I find pretty good.
YouTube has a lot of videos on it

I am not affiliated with Market Club. I'm just a member.
Penny Picks is offline   Reply With Quote
Old Feb 2, 2018, 6:19pm   #4
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by Penny Picks View Post
There was no 'STOPPED OUT on this trade. It went from 'Super Trade" to "What Happened"?

I was waiting for a Close Trade Triangle
but one didn't show. That's not counting the one on the 5th.

This isn't the end of my trading world. I closed it out with a loss of a couple hundred bucks.

I only bet $250 USD, or so, on a trade; in the "Penny Stock" market. Most of the time I double it and
every once in awhile Big Winner. $245 >> $3200 USD.

Do I win every time? Of Course I do.

I do subscribe to Market Club. They have a trading Triangle system that I find pretty good.
YouTube has a lot of videos on it

I am not affiliated with Market Club. I'm just a member.
No offence, but this is the stupidest system I ever heard of: you buy something, it goes up 4 times and you not only didnít sell something to at least brake even, but lose money in the end...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

Count de Money number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Old Feb 2, 2018, 8:37pm   #5
 
Penny Picks's Avatar
Joined Jan 2018
Penny Picks started this thread
Quote:
Originally Posted by Quantt View Post
No offence, but this is the stupidest system I ever heard of: you buy something, it goes up 4 times and you not only didnít sell something to at least brake even, but lose money in the end...
You know the saying. What's STUPID to one is WISDOM to another.

I've been in this game a very long time; 1987 actually. I've seen a lot of
"Systems" come and go. There is a few things in my "SYSTEM" that aren't shown. So I'm out a couple hundred bucks; not the end of anything.

But; and that's a big BUTT, not everything is foolproof.
Penny Picks is offline   Reply With Quote
Old Feb 2, 2018, 8:58pm   #6
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by Penny Picks View Post
You know the saying. What's STUPID to one is WISDOM to another.

I've been in this game a very long time; 1987 actually. I've seen a lot of
"Systems" come and go. There is a few things in my "SYSTEM" that aren't shown. So I'm out a couple hundred bucks; not the end of anything.

But; and that's a big BUTT, not everything is foolproof.
Yeh, whatever, there is not an ounce of evidence this club is making money from trading...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

Count de Money number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Old Feb 2, 2018, 10:44pm   #7
 
Penny Picks's Avatar
Joined Jan 2018
Penny Picks started this thread
Quote:
Originally Posted by Quantt View Post
Yeh, whatever, there is not an ounce of evidence this club is making money from trading...
"This Club" is a subscription service. A member does their own trading.

They are no different than any other "Stock Screening" service.
I put in a set of parameters and MC does a "Search/Screen" for what I input using their set of THEIR PARAMETERS.

If a member follows their results then there's a pretty good chance of making a couple of bucks.

Do a review and check out a few videos. It's not a rip-off; it's just something you know absolutely nothing about.

There's a lot of that in the trading world.
Penny Picks is offline   Reply With Quote
Old Feb 2, 2018, 10:51pm   #8
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by Penny Picks View Post
"This Club" is a subscription service. A member does their own trading.

They are no different than any other "Stock Screening" service.
I put in a set of parameters and MC does a "Search/Screen" for what I input using their set of THEIR PARAMETERS.

If a member follows their results then there's a pretty good chance of making a couple of bucks.

Do a review and check out a few videos. It's not a rip-off; it's just something you know absolutely nothing about.

There's a lot of that in the trading world.
No thanks
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

Count de Money number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Old Feb 3, 2018, 3:23am   #9
Joined May 2012
Quote:
Originally Posted by Penny Picks View Post
You know the saying. What's STUPID to one is WISDOM to another.

I've been in this game a very long time; 1987 actually. I've seen a lot of
"Systems" come and go. There is a few things in my "SYSTEM" that aren't shown. So I'm out a couple hundred bucks; not the end of anything.

But; and that's a big BUTT, not everything is foolproof.
I am having a hard time reconciling between your post here and your original post. You need to make up your mind whether it is a nothing burger or a big deal.
__________________
_______________


Those who know do not speak
Those who speak do not know
Since I have spoken, I do not know
Brumby is offline   Reply With Quote
Old Feb 3, 2018, 12:36pm   #10
 
Penny Picks's Avatar
Joined Jan 2018
Penny Picks started this thread
Quote:
Originally Posted by Brumby View Post
I am having a hard time reconciling between your post here and your original post. You need to make up your mind whether it is a nothing burger or a big deal.
I'm not sure but I think you are referring to the 'News Trap' post. If so then nobody would have seen the sharp drop coming.

The indicators I use are based on Divergence from price. I use 3 such indicators and none showed the pending doom lurking around the corner.

What about S/L? Price would have shot right thru a S/L.

As for my trading rules. I have a strict set of trading rules that I don't always follow. : NPHC. It's a heavily traded Micro-Cap that doesn't have
a lot of assets. I figured the Volume made the difference. So far it's doing OK. A lot of traders have their Holy Grail for trading. They swear by them. Me? I go with what I see as a good trade.

It works for me.

A number of years ago I bought 3 LIVE HOG contracts. Out of the blue the price dropped to "LOCK LIMIT" down for 3 days; that was $2000 p/contract.
All the clever ways traders come up with for trading
would not have helped any traders; unless of course you had "Shorted" the contracts. (I don't trade commodities any more.)
Penny Picks is offline   Reply With Quote
Old Feb 3, 2018, 8:36pm   #11
Joined Oct 2015
Quote:
Originally Posted by Penny Picks View Post
..The indicators I use are based on Divergence from price.. I use 3 such indicators and none showed the pending doom lurking around the corner.
divergence wouldn't warn you of the clinical trials press release bombshell!

https://www.smarteranalyst.com/2018/...sing-80-today/

Last edited by Kaeso; Feb 3, 2018 at 10:18pm.
Kaeso is offline   Reply With Quote
Old Feb 4, 2018, 2:48am   #12
Joined May 2012
Quote:
Originally Posted by Penny Picks View Post
nobody would have seen the sharp drop coming.

The indicators I use are based on Divergence from price. I use 3 such indicators and none showed the pending doom lurking around the corner.

What about S/L? Price would have shot right thru a S/L.
In considering overall risk there are generally two components to it. There is risk and uncertainty. Risk is the quantifiable portion of the equation. For example, if you are risking 2 % on any one trade and your protective stop level is set accordingly then you have quantified your known risk. Uncertainty is a risk factor that cannot be quantified upfront. You cannot define it and neither can you anticipate it other than the fact that it exist because we know of it from history. It can be far reaching like confluence of events leading to GFC or a change in policy like SNB leading to significant market dislocation and liquidity. On a smaller scale it can be significant news specific to an instrument like in your example. In such events your SL may not be sufficiently protective to limit your overall risk.

In regards to your faith in your indicators in that it is an all encompassing utility trading tool, I am unsure whether you are being incredibly naÔve or too blind sided as to the limitation of indicators. Having three different clocks to tell the time doesn't mean you get better time information.

Quote:
Originally Posted by Penny Picks View Post
As for my trading rules. I have a strict set of trading rules that I don't always follow.
Is it meant to be an oxymoron statement?



Quote:
Originally Posted by Penny Picks View Post
: NPHC. It's a heavily traded Micro-Cap that doesn't have
a lot of assets. I figured the Volume made the difference. So far it's doing OK. A lot of traders have their Holy Grail for trading. They swear by them. Me? I go with what I see as a good trade.

It works for me.
Exactly my original point. If it works for you why are you whining? If it works just carry on.

Quote:
Originally Posted by Penny Picks View Post
A number of years ago I bought 3 LIVE HOG contracts. Out of the blue the price dropped to "LOCK LIMIT" down for 3 days; that was $2000 p/contract.
All the clever ways traders come up with for trading
would not have helped any traders; unless of course you had "Shorted" the contracts. (I don't trade commodities any more.)
Not sure what is your point. In trading, the outcome is either you win or loose on a trade.
__________________
_______________


Those who know do not speak
Those who speak do not know
Since I have spoken, I do not know
Brumby is offline   Reply With Quote
Old Feb 4, 2018, 9:59am   #13
 
Penny Picks's Avatar
Joined Jan 2018
Penny Picks started this thread
Quote:
Originally Posted by Brumby View Post
In considering overall risk there are generally two components to it. There is risk and uncertainty. Risk is the quantifiable portion of the equation. For example, if you are risking 2 % on any one trade and your protective stop level is set accordingly then you have quantified your known risk. Uncertainty is a risk factor that cannot be quantified upfront. You cannot define it and neither can you anticipate it other than the fact that it exist because we know of it from history. It can be far reaching like confluence of events leading to GFC or a change in policy like SNB leading to significant market dislocation and liquidity. On a smaller scale it can be significant news specific to an instrument like in your example. In such events your SL may not be sufficiently protective to limit your overall risk.


In regards to your faith in your indicators in that it is an all encompassing utility trading tool, I am unsure whether you are being incredibly naÔve or too blind sided as to the limitation of indicators. Having three different clocks to tell the time doesn't mean you get better time information.


Is it meant to be an oxymoron statement?




Exactly my original point. If it works for you why are you whining? If it works just carry on.



Not sure what is your point. In trading, the outcome is either you win or loose on a trade.
There are some interesting points here.
My indicators are used to qualify a trading pattern I may be looking at.
ie: 1-2-3 UP..( The UP indicates the possible end of a down trend)

This pattern appears a lot of different places on a price chart. If I have 3 different indicators diverging from price then I read it as the end of a trend. I then will place a GTC at or above the #2 point of the pattern.

Then, if the GTC is triggered, that probably means that the trend was over and prices are PROBABLY going UP. If, on the other hand prices drop below the #3 point then the trend is likely not over.

Is this an ABSOLUTELY can't miss trading pattern? Aren't they all.


OK. An oxymoron trading Rule. That sounds like Military Intelligence.
One thing I've learned over the years in the trading arena is that Nothing Is Absolute


"LOCK LIMIT DOWN"
You really do not know what you're in for If you've never been in one. The lesson? Do Not Trade Thin Markets!

NEWS TRAPS. Just a name I made up. There was no indicators indicating a pending doom. Also, a S/L wouldn't have saved your butt either.

The only saving grace for OHRP is that you can hang on to it until it disappears from the world. I still have a couple of stocks like that. I gave them to my daughter. You do not get that in the other markets; Commodities, FX, Indexes, etc. I've traded all of them.

OK, One more point.
"In regards to your faith in your indicators in that it is an all encompassing utility trading tool, I am unsure whether you are being incredibly naÔve or too blind sided as to the limitation of indicators. Having three different clocks to tell the time doesn't mean you get better time information."

Indicators are TOOLS; just like "Price Patterns". That's it, nothing more.
They are not a Be All To End All. I have 3 indicators I use for my pattern trading. Why 3? Because if works for me. And that, my fellow traders, is really all that matters.

OK, that's my whining for the day.
Penny Picks is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
News trading - ideas how to trade news as markets move too fast at news tine to get ? theneedforspeed First Steps 9 Aug 7, 2016 9:49pm
penny stock news jefreunde74 General Trading Chat 0 Apr 14, 2012 4:00pm
Net trap EA versus discretionary trading peterf1966 Forex Net Trap 1 Dec 8, 2011 10:29pm

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