The Expert
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If anyone wants they can post the next trade setup for BDX, which may or may not materialize. I will not, however, post the format again.
How To Trade: Full Stop
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morgan_edge
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Well we all use different setups to enter our trades. Do you mean you want someone to post a live call for BDX once the US market opens using their method?
timsk
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Fair enough TE.
One small favour though, can you tell me where the first 'trade setup' is please, so I've got some idea what to look for.
Cheers,
Tim.
rathcoole_exile
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The Expert
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No, I did mention "may or may not materialize".
The trade should be based on what is probable from the info already discussed. There are only 4 variables that need be considered when constructing a probable trade. If the trade does not materialize then that is fine, but, unless you have other trades "ready to go" you might just find yourself doing nothing when the market opens, which is the best time to daytrade.
The Expert
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Tim, you have all the information you require. This is what happens when you are subjected to misleading information, the end result being having no trades set up for the open.
Charts are used incorrectly by the majority of traders. You do not, and I will repeat again in case it does not sink in, You do not rely on charts alone for trade setups, as that is unprofessional and downright stupid.
If you were going out shopping to buy a new laptop, would you wait until you are in the shop and then ask the salesman all about the features?
Odds are you would, as most do, but those who know hardware will investigate the specification first to make sure that what they are buying is what they require.
Stock trading is no different. If you listen to salesmen all the time then odds are you will not get the best deal available.
How far has BDX traveled today, I bet you it is more than 50 cent.
The Expert
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OK, can we please have a summary of what we have learned so far?
If the basics are not being grasped then it really is a waste of time, and I do not like to see anyone wasting their time, especially ME.
If the basics are not being grasped then it really is a waste of time, and I do not like to see anyone wasting their time, especially ME.
temporarilylight
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Probably. But you didn't call a direction. Anyone can come up with a basket of stocks with a decent average range, no? Wont help them make any money though will it?
PS. Im very glad that timsk is a confused as me, lol. Im kind of stupid, but Timsk is a clever guy. Its quite funny, because when this thread started getting all typically criptic, I was gonna suggest that someone smart like Timsk should be nominated to translate all of the rubbish into plain English for the rest of us!
timsk
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Oh how I wish it were true, kind of you to say so all the same!
If I have a minute in the next day or two, I'll go through the thread from scratch and do as TE asks although, it must be said, it would be a whole lot easier if s/he did it, seeing as it's his/her thread and, presumably, has a good idea of what s/he's said! On that note TE, if you're genuinely wanting to impart valuable ideas for the benefit of the membership, then writing them out clearly in your own hand is surely the best solution?
Tim.
PS. Funnily enough, I have recently bought a laptop. TE - you'll be surprised to learn that I consulted three people besides the store salesperson before making a decision, two of whom are contributors to this thread!
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which is just about exactly what it does everyday
If you want to get this stuff for yourself
http://www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500-usduf--p-us-l--
You will need to register to get the latest version of this (today it is 17th Feb 2009 version) . You need to find "Index earnings" under "Index data". Once you download the spreadsheet then go to the Issue level data worksheet.
If you just want to see what it looks like without registering on the site, there is a Q4 2009 version here:
www2.standardandpoors.com/spf/xls/index/SP500EPSEST.XLS
This will give you an idea of what is held there
Charlton
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temporarilylight
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I've learnt that:
A chart with no legend and no axes labels really doesn't tell me much about anything, and makes being 'taught' quite brutal.
We finally learnt that the charts you posted showed
*daily range (high - low) of C.
and
*(Close - Open) of C.
(from another poster no-lesss!! )
If a stock always ahas a big range, it'll probably have a big range tomorrow. (although we dont know which way it'll move)
I've also learnt to check the hardward specs etc, before buying a laptop.
So far..so good!
The Expert
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Oh how I wish it were true, kind of you to say so all the same!
If I have a minute in the next day or two, I'll go through the thread from scratch and do as TE asks although, it must be said, it would be a whole lot easier if s/he did it, seeing as it's his/her thread and, presumably, has a good idea of what s/he's said! On that note TE, if you're genuinely wanting to impart valuable ideas for the benefit of the membership, then writing them out clearly in your own hand is surely the best solution?
Tim.
PS. Funnily enough, I have recently bought a laptop. TE - you'll be surprised to learn that I consulted three people besides the store salesperson before making a decision, two of whom are contributors to this thread!
Sorry, but I only help those who are able to help themselves, and others.
Should you care to partake, and advance the learning of the students a bit more, we also now require an explanation of this next graph. I know DT will get it with his fancy TS programming, but it is also very simple to get it with excel (as simple as Charlton's post) and we can use the vast experience of the MSFT programmers, for free.
As I keep saying, this is all basic stuff, as some posters have rightly pointed out. However, it is the basics that matter most, in any job.
The Expert
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To the point, we only want to trade stocks that have ADEQUATE ranges for to allow us capture an ADEQUATE % of the daily range. Do not, and I will repeat again, Do not try and get near the H or L or the day, for that is what the amateurs do.
Fail To Plan and Your Plan Will Fail
As for which way "it will move", I thought that should be now becoming a bit more clear, but maybe I am wrong?
The Expert
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Just to clarify, I am not here to waste your time, nor MINE.
I do not like repeating myself, so let this be the last time. If you are smart enough and do a bit of work you will crack it very easily, for it really is as simple as ABC.
All this rubbish about brokers and cheap commissions, are just that, rubbish. If commissions are bothering you then you are better off to not trade, and put your money away for your kids or retirement.
For those of you who live in Europe, you even have far better odds as you do not need to have access to discount brokers to trade, and with ever increasing competition, the playing field is just getting better and better for the punter.
Know your range, your profit target, and more importantly, keep your losers much smaller than your winners, which, if you listen to me, and use your head, you will accomplish same.
If you think I am joking, then now is the time to jump ship and put me on ignore, but, if you have any ounce of sense at all then you should see that everything I say is factual and correct, and that is what counts, not the way I present it.
So, it is up to you, like it or lump it.
I do not like repeating myself, so let this be the last time. If you are smart enough and do a bit of work you will crack it very easily, for it really is as simple as ABC.
All this rubbish about brokers and cheap commissions, are just that, rubbish. If commissions are bothering you then you are better off to not trade, and put your money away for your kids or retirement.
For those of you who live in Europe, you even have far better odds as you do not need to have access to discount brokers to trade, and with ever increasing competition, the playing field is just getting better and better for the punter.
Know your range, your profit target, and more importantly, keep your losers much smaller than your winners, which, if you listen to me, and use your head, you will accomplish same.
If you think I am joking, then now is the time to jump ship and put me on ignore, but, if you have any ounce of sense at all then you should see that everything I say is factual and correct, and that is what counts, not the way I present it.
So, it is up to you, like it or lump it.
DionysusToast
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No parlour game - just an exercise in perspective and expectation.
"the high-low range of the day is not usually equal to or greater than the close-open range"
There are 2 ways to interpret this, one interpretation of 'not usually' in the above would be 'seldom'. Another equally valid interpretation of 'not usually' could be 'always'. In this case 'always' would be the correct interpretation.
Perhaps also, the interpretation of 3 bar charts showing daily range and net change should be looked at from different angles too. When I first saw the 'C' chart, I put down that it 'may be' daily range but I wasn't sure because the range was small and would be something I'd largely ignore. In hindsight, this is more than likely the reason 'C' was inlcuded in the first place.
So - my perspective was one of expecting the chart to be showing something we would trade as opposed to something we wouldn't. Hence my expectations clouded my ability to make the correct call.
This type of bias is relevant to trading in my opinion.
DionysusToast
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Thanks for that - I do subscribe to briefing.com, I have the information - but I want to bring all the information I keep into one place. I also want to be able to refer back to my notes each quarter so that each earnings time, I can dip into my experiences from trading the stock last quarter. I am suprised such a database for a trader does not already exist.
I have seen some links in the past for specialist trading diary software and/or portfolio software. Many are quite cheap or are shareware and can be easily found using Google to search for "trading diary software" and "Portfolio software". Some have links to large brokers such as IB to import data directly.
Here's just one costing $89, with links to IB, Metatrader and FXCM and a free trial toboot !
http://www.tradingdiarypro.com/index.php/tradingdiarypro/features.html
Alternatively common databases such as access can be easily set up to produce customised databases.
Charlton
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