Position trading stocks

This is a discussion on Position trading stocks within the Trading Journals forums, part of the Reception category; Originally Posted by Jason101 You should be able to speed up that process by using a stock screener formatted by ...

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Old Jul 15, 2017, 7:06am   #61
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You should be able to speed up that process by using a stock screener formatted by indicators.

Surprisingly , just scanning for 20 day or 50 day highs gives some nice stocks lol
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Old Jul 15, 2017, 8:19am   #62
 
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To my surprise , when it should have been obvious really , I found stocks do move pretty much in tandem with the overall index.
They are the index.
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Old Jul 15, 2017, 9:00am   #63
 
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They are the index.
......although weighted differently.
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Old Jul 15, 2017, 9:09am   #64
 
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True , but using a buy stop order means opening up to potential slippage which would skew the risk reward negatively and make it difficult to manage . Imagine placing a buy stop for a stock at $10 , stop $9, assuming a clean fill a risk of $1 per share .

Imagine a weekend gap to $11 per share which automatically fills and now you have $2 per share risk which is much worse .

Of course I could use a buy-stop limit order to minimise this , but generally I just think it's easier to use a normal limit order , especially given I am entering on a pullback to an Ema
It's probably better to avoid having orders in during the hurly burly of the opening few minutes anyway because of the volatility and spread widening that can happen. So you'd avoid slippage from opening gaps. Appreciate that you are probably not around to get your orders in after US open.

The advantage of stop orders in my view is that the price is moving in the direction of the trade.
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Old Jul 16, 2017, 10:16pm   #65
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Hey mate , yeh if I'm honest an all time high is definitely potential resistance , but in this case the high is so far away it almost seems irrelevant. Of course it still holds weight and I will cut the trade if the weekly prints a fakeout of the level.

As for A (Agilent technologies ) I think you're looking at a different stock maybe as it appears to be at 60 odd lols.
Hello,
No we have the same ticker, the high was at 6121, back in Jan 14 (see attached chart). It was a long time ago, I am probably more cautious than most, What I like to trend follow most is what I call "blue sky charts", as in there is no print on the charts above current price.

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To my surprise , when it should have been obvious really , I found stocks do move pretty much in tandem with the overall index.

Of course certain stocks in certain sectors with certain patterns do offer more potential than a buy and hold imo but to up the risk to more than 4% would simply be taking on more than 4 stock trades at once , which I don't really find necessary .

Basically just a personal risk cap and cap on the number of trades I feel I can manage effectively
You have to do what is right for you especially risk wise. What I do is reach my maximum at risk point in longs and then allow to take a short trending trade (if the index's are long). Also I can increase my at risk percentage by trading bonds and commodities too.


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Surprisingly , just scanning for 20 day or 50 day highs gives some nice stocks lol
Although not my usual scan, I find this too.

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The advantage of stop orders in my view is that the price is moving in the direction of the trade.
I'm pretty much with barjon on this one. But I can see where you are coming from especially if some of your stocks are ill-liquid stocks or if you are buying on a pull back and using the recent high as a target of some sort, like a b/e point for example.

Can I just ask you Chartsy, if you are trend following these stocks and if so are you hoping to hold for as long as possible, weeks and months when possible?
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Old Jul 17, 2017, 5:14pm   #66
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Hello,
No we have the same ticker, the high was at 6121, back in Jan 14 (see attached chart). It was a long time ago, I am probably more cautious than most, What I like to trend follow most is what I call "blue sky charts", as in there is no print on the charts above current price.



You have to do what is right for you especially risk wise. What I do is reach my maximum at risk point in longs and then allow to take a short trending trade (if the index's are long). Also I can increase my at risk percentage by trading bonds and commodities too.




Although not my usual scan, I find this too.


I'm pretty much with barjon on this one. But I can see where you are coming from especially if some of your stocks are ill-liquid stocks or if you are buying on a pull back and using the recent high as a target of some sort, like a b/e point for example.

Can I just ask you Chartsy, if you are trend following these stocks and if so are you hoping to hold for as long as possible, weeks and months when possible?
Hey mate . Yeh I just had a look at A and thankfully it's just closed over that all time high so I consider it support if anything for now .

I try to hold on as long as the trend still has momentum , however long that may be . I use a mechanical Ema exit strategy to help with this (a close under the 6 week EMA) which hugs price well in strong moves
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Old Jul 18, 2017, 5:30pm   #67
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Chartsy started this thread For exiting trades I have a mechanical exit if the weekly bar closes (emphasis on closes) below the 6 week Ema . However at times I also trail a hard stop too to prevent a shock sell off taking out all gains on a trade .

So for example I am now trailing my stop on BK from breakeven to 51 but will still close the trade in any case if price closes below the Ema .

at other times , too,such as a large parabolic surge followed by a very bearish candle , I will place an even tighter hard stop , it just depends . This is semi mechanical to allow minimal meddling with trend trades so trades can run , but still have a hard stop in place just in case
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Old Jul 18, 2017, 8:22pm   #68
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Chartsy started this thread Got filled on CCE @42
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Old Jul 23, 2017, 12:08pm   #69
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Chartsy started this thread BK printed a weekly wickish candle suggesting potential slowdown in momentum , consequently I am trailing a hard stop to 52
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Old Jul 26, 2017, 4:40pm   #70
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Chartsy started this thread Stop moved to breakeven on CCE
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Old Jul 28, 2017, 12:23am   #71
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at other times , too,such as a large parabolic surge followed by a very bearish candle , I will place an even tighter hard stop , it just depends . This is semi mechanical to allow minimal meddling with trend trades so trades can run , but still have a hard stop in place just in case
Trend following can do your head in.
My exit is a close below a (daily) donchian channel, usually somewhere between a 10 and a 20 depending on the stocks behaviour.

And it is HELL!!! - This means I have to watch profits fall back away from me. After a good leg up I sit through price (and unrealised profit) falling back against me, often not to far from entry as it swings back down on a swing trade time frame.
At this point I have to grit my teeth, smile and remember I am a trend follower not a swing trader. Sometimes the move in my direction for profit is parabolic, it hurts. I used to trade a hybrid system between a swing and trend following system. Exiting 50% after the swing and holding the rest for following the trend. But if I have to be honest that was just to make me feel comfortable. For me the most profitable way to trade in the long term, is to hold for the long term trend to end while adding (a very tight entry price, with a fairly good win ratio is needed.)
So I try to look at a retrace (while still in profit) as - "That's great! A good time to add." But I do appreciate this will be very different for each and every trader. And did I mention it feels like hell!
I think this is why trend following is so hard, doing what feels uncomfortable.

Last edited by Jason101; Jul 28, 2017 at 1:40am.
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Old Jul 28, 2017, 9:02am   #72
 
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.......And it is HELL!!! - This means I have to watch profits fall back away from me...........
Yes, and me it gives me far more mental grief to see this than it does to get out and see price go on without me. Never been able to change that mind set so cater for it by exiting to target - not slavishly, but tightening exit criteria at that point. If price keeps bombing along after I've gone I'll generally get a re-entry opportunity although not always.
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Old Jul 29, 2017, 11:37am   #73
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Chartsy started this thread Trailing stop on BK to 52.17 (big bearish pin bar, not taking any chances ) .

Stopped out on Agilent (A) for -1%

Cumulative return + 0.53%

Last edited by Chartsy; Jul 29, 2017 at 4:24pm.
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Old Jul 29, 2017, 11:47am   #74
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Chartsy started this thread New order on CH buy limit 7.53 stop 7.16 :nice base/flag breakout
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Old Jul 29, 2017, 12:01pm   #75
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Trailing stop on BK to 52.17 (big bearish pin bar, not taking any chances ) .

Stopped out on Agilent (A) for -0.6%

Cumulative return + 0.93%
Hello,

Your stop on A was 60, which is less than the daily ATR, with such a tight stop, less than the daily ATR, I was wondering if you may not be better off using the daily chart.
Also, funnily enough your exit on A is just about setting up for an entry for me.
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