isa's short term trading journal

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Old Jan 16, 2011, 10:52am   #29
Joined Nov 2001
re: isa's short term trading journal

You are frightening me! I've been trading for decades and that has not happened to me. I'm not saying that you are wrong and it is, certainly, something that I must look into. It only needs to happen once, of course!
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Old Jan 16, 2011, 10:54am   #30
 
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Re: SP 500 Short Entry – Mar 11 Spread

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Originally Posted by isatrader View Post
I’ve gone Short the SP 500 Mar 11 Spread

Entry Price: 1264.80
Stop: 1273.20
Target: 1225.00

Risk/Reward Ratio: 4.74
You asked to analyze more charts/trades that you took, here is one more, the first chart that you posted I think... I can see the reason (I think) why you went short there, it is a resistance zone (at the top of the yellow arrow). Or maybe that was not the reason, it doesn't matter, I would like to point you to the important pin bars on this chart (from left to right):

Click the image to open in full size.

- First reddish arrow pointing to the pin bars, price got rejected at 1250, you enter those a few pips above the pin, SL being a few pips below the pin. Would it work out? Yes on all 3 pins.

- Two bluish arrows pointing to the pins, price bounced from EMA, you can enter straight at EMA touch or wait for the pin to break. Would it work out? Yes on all 5 pins.

- Second red arrow pointing to the pin on the top, that one would work nicely as well, depends how you want to play it it you would move SL on the highs of 2 pins behind the price or expect retrace to probably go till your entry + a few pips in minus. I would close it probably and reenter on the highs of retracement after the yelow arrow.

- Yellow arrow pointing to the pin, that one would work as well if you would place position to BE or take TP at the bottom of the previous high. Do you see where the price retraced? Right till there!

- Last red arrow pointing to the pin at pivot zone 1260 (look at the left, see how the price stalled there, and now price got rejected from this zone). If I would still have short position open from the second red arrow or from the highs after yellow, this is where I would definitely close the positions and went long. Again depends how you want to play it, but most probably my TP would be previous bar lows (although the move up was very forceful, long bars, so I might have waited a bit as well). I would not dare to go short there, Price action does not support short trade at this time.

That's all from me, I hope you will find my input helpful. Take care!
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Old Jan 16, 2011, 1:43pm   #31
Joined Sep 2009
re: isa's short term trading journal

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Originally Posted by Splitlink View Post
You are frightening me! I've been trading for decades and that has not happened to me. I'm not saying that you are wrong and it is, certainly, something that I must look into. It only needs to happen once, of course!
I must admit I was a bit surprised, but I was doing some investigating last night on my IG account browsing some random charts and found several (4 or 5) stocks with huge spikes, unsurprisingly most were around Oct/Sep 2008. For example try looking at Dolby Laboratories Sep 4 2008. Now these must be down to the way the SB company calculates "their price", and I don't know how valid they are and whether if you challenged them they would say they were errors...? I am going to email IG to query. But it does concern me if I was going short...
My CityIndex chart of Dolby Labs does not show such a spike for example. So to what degree could IG say, well that's "our price" tough...?
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Old Jan 16, 2011, 2:01pm   #32
Joined Mar 2010
re: isa's short term trading journal

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Originally Posted by leonarda View Post
I must admit I was a bit surprised, but I was doing some investigating last night on my IG account browsing some random charts and found several (4 or 5) stocks with huge spikes, unsurprisingly most were around Oct/Sep 2008. For example try looking at Dolby Laboratories Sep 4 2008. Now these must be down to the way the SB company calculates "their price", and I don't know how valid they are and whether if you challenged them they would say they were errors...? I am going to email IG to query. But it does concern me if I was going short...
My CityIndex chart of Dolby Labs does not show such a spike for example. So to what degree could IG say, well that's "our price" tough...?
Are these stock splits?
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Old Jan 16, 2011, 2:46pm   #33
Joined Nov 2001
re: isa's short term trading journal

The first company I used for trading was IG. This was in the 80s and I lost 60 points and was stopped overnight. I rang them and they told me that it was legitimate and were sorry and that was that. I did not argue about it but switched to CI and, then, to Fins where I have been since before they went online, which is a long time! Trading conditions have been steadily improving since then , probably due to competition. Most of the spikes I see seem to be backed in other sources. Nevertheless, BS firms are not angels and any complaint that I read is a nudge for me to watch it and not be too trustfull.
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Old Jan 16, 2011, 2:52pm   #34
 
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Re: Money Management

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Originally Posted by leonarda View Post
I must admit i've decided my short strategy on stocks is to always use a guaranteed stop, as although underlying market prices are extremely unlikely to gap several 100%, spread betting prices can. I've found many historical examples of gaps of 500+%...
I’m not sure if you understood what I meant when I said about my risk method when shorting. Individual stocks can spike 500%+ like you described, so I’d stay away from them if they didn’t have the option to use a guaranteed stop. However, what I was saying was that the S&P 500 Index has never spiked more than 100% instantly as far as I know, so I feel much more comfortable to be able to use normal stops on it as the likelihood of that happening is very low.
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Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill – Reminiscences of a Stock Operator.

Last edited by isatrader; Jan 16, 2011 at 6:06pm.
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Old Jan 16, 2011, 3:01pm   #35
 
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re: isa's short term trading journal

isatrader started this thread Below is the 4hr charts of the S&P 500 Rolling Spread and the S&P 500 Mar 11 Spread. It shows a huge down spike on the rolling spread. Would this have taken out a stop at a much lower level. I don’t know. Or is it just a mistake in their charts?
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Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill – Reminiscences of a Stock Operator.

Last edited by isatrader; Jan 17, 2011 at 12:18am.
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