Adventures with Chick Goslin - Trading Day by Day

This is a discussion on Adventures with Chick Goslin - Trading Day by Day within the Trading Systems forums, part of the Methods category; Originally Posted by erierambler no one is really right or wrong, it's just our interpretation , and appreciate the discussion. ...

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Old Feb 5, 2005, 4:47pm   #17
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ardhill started this thread
Quote:
Originally Posted by erierambler
no one is really right or wrong, it's just our interpretation , and appreciate the discussion.
In this case, the market said that I was wrong, and there is not much point arguing with the market.

The discussion, is why I started this. Since a number of people on T2W had read the book, I wanted to take a live trade to talk about it.
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Old Feb 5, 2005, 7:10pm   #18
 
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Cien

I know Chick says he goes on the price but it may be of interest to note that :
A director (John R. Dillon) "left" yesterday
The price has been over $6 in the last year
M & A rumours with Cisco and Lucent
I think this share is largely driven by news
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Old Feb 6, 2005, 3:01am   #19
Joined Dec 2004
Have a look at this link
http://fibonacc*******.com/
I've attached it because on the site there are some free articles about how Gann defined trend which i think may be useful. It seems to me that Goslin's system might be improved for stocks by a better definition of current long term trend or at least by requiring two confirms of trend - Gann style and 50 MA though I'd still definitely consider shortening the 50 MA for stocks and making it exponential. On the basis that stocks are more unpredictable than futures and that relying solely on the 50 MA to determine trend is going to miss the early big moves and also be a hostage to fortune when you are trying to determine whether trend has moved against you.
I haven't had the chance to research this but thought you might be interested as you are looking at refining this aspect of his excellent system.
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Old Feb 7, 2005, 9:00pm   #20
Joined Aug 2004
New Trade Taken Today

ardhill started this thread Hi

I took this trade today using Chick Goslin's system (as described in "Trading Day by Day")


Hecla Mining (HL) Nasdaq

Status - Bearish, -3 points

TL down in established trend, ML down and below 0, SL down and below 0

I decided to go for an established trend this time, and not try and get in at the start of a move, going with the idea that continuation is more likely than change (I am being very restrained).
So we are in an established downward trend.

The price action has been going down and the lines are trending down nicely.

I took the short trade today when the price broke lower than the low of 8th December, you can see by the long dotted white line when I entered my short. The solid blue line above it, is a previous major S/R line, which is why the stock has been consolidating about it. Note that I waited till we broke through that too.

The short dotted white line above that is my initial stop.

Entry Price - 5.29
Initial Stop - 5.51


Constructive comments, thoughts and help are welcome.

Just a reminder, I am no expert in this trading style, nor can I be trusted to give any trading advice. If in doubt, just look at the losing trade above I am doing this as an excersise for myself, and anyone else interested in this trading style.
Attached Thumbnails
hl-07-02-05.jpg  
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Old Feb 8, 2005, 9:10am   #21
s-a
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Looks good ardhill. I'm dubious of these cheap stocks. No idea how effective the lines are on instruments like these. Weekly chart looks like good previous support at $5. Interesting to see how it holds in this concurrent market. Best of luck on this one.

HG
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Old Feb 8, 2005, 7:32pm   #22
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ardhill started this thread
Quote:
Originally Posted by s-a
Looks good ardhill. I'm dubious of these cheap stocks. No idea how effective the lines are on instruments like these.
Yes, I know what you mean, when I day trade I like stocks that have a minimum volume of 2 million and normally don't trade anything under $20, and preferably nearer the $100.

I have a look at the pattern of the cheap stock and the market, if it look in keeping with others and the general trend, then I will take a chance on them. But I do have a very specific reason for choosing them on this strategy...

Trading daily charts is a bit out of my norm, so I need to be cautious, also I obviously haven't traded this 'system' for long, so I am still learning how it works. So, If I choose a cheap stock like Hecla Mining, I can put a legitimate initial stop in place that is only about 30c away, if I have read the market wrong, I loose 30c per share max. If I use this system on Apple for example, then my stop could easily be $7 away. I think I would rather risk 30c than $7 whilst I am learning this system. I am not very good at paper trading, I need to put money on the line to see how I will 'really' manage the trade. These stocks may be cheap, but I will trade them like I have money on the line (I do), but they won't hurt too much if I keep getting it wrong.


Quote:
Originally Posted by s-a
Weekly chart looks like good previous support at $5. Interesting to see how it holds in this concurrent market.
Ahh, yes this is true and there is something else I didn't mention.

I noticed that S/R area myself and wondered about it. I have actually taken a multi part position on this stock, i.e. I am willing to close it in 3 parts. Because of that $5 area, I took profits on one part today, just above the support @ $5.03, so I now have 2 parts left in the trade. I may take some more profit before the end of the day - we will see. I have also moved my stop to B/E because of the possible bounce up off $5.
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Old Feb 8, 2005, 9:46pm   #23
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ardhill started this thread Well, it's been a busy day today for me in Hecla Mining

As you can see from the post above, I had a 3 part position on this stock.

1st part I took as we approached the S/R level (mentioned in my previous post).

Then the stock rallied to a high point at approx. 11.30 EST and fell back a little. But instead of continuing down, it rose back to it's heights again at approx. 1pm EST. Since there was obviously some upside potential in the stock, I took profits on the second 1/3 of my position. My stop at this point on the rest is now at break even.

Approaching the last part of the trading day, the stock has not lost any strength and is close to my B/E stop. As there is obviously some upside strength in the stock, I decided not to carry overnight, I would have left the stop at B/E but, I was concerned that the market could well gap up tomorrow on the strength and I would eat into the profits I made on the other two parts of the position. So, I covered on the last 1/3.

It may not have lasted long, but at least I took some profit on this one

(This is a 5 Min chart of the action today)
Attached Thumbnails
hl-08-02-05-5min.jpg  
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Last edited by ardhill; Feb 10, 2005 at 9:10pm. Reason: missing ltters
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Old Feb 9, 2005, 11:36pm   #24
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ardhill started this thread Yep, glad I got out yesterday. Another up day today on Hecla which would have taken me beyond my entry point.
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