Evening trading US shares

Thanks again chaps, all the feedback is very helpful. (especially Dave, Lloyd and Pitbull - you guys have really got my thinking and at last I have a little more belief that success is a possibilty)

I have looked through many of the old posts (all in fact, much to my partners discontent at the late nights :rolleyes: ), and whilst they provide some really great information I am overwhelmed and left with the feeling that there is just something else that is missing and I can't put my finger on it.

For clues as to whether a setup will follow through I guess logically it has to be a combination of trades going through faster than normal (the tape) whether at the bid or the ask (long or short) with an increase in volume. I feel close to getting it but I can't seem to quite make it.
I guess others have been in this position and have pulled through, whereas many will get to this level and give up. I guess that's the old 90% failure stat for you.

Another one of the problems I do have is watching so many stocks. Even with 10 "movers" in my watchlist I find that inevitably it's the one stock that I didn't keep an eye on that moves well :devilish:

Sorry this has become a rambling dump of my thoughts, but I've invested so much time in this, that I will make it work out , whatever it takes.

Anyway guys thank so far, good weekend whats left of it.

Ed
 
lloydsc said:
Hi All

Interesting and thought provoking post Dave.

If a stock such as SNDK was trading on low volume for the day, compared to it's average daily volume, and suddenly on the 5 minute chart the volume starts to pick up significantly would it qualify as a consideration in your eyes even though it's daily volume is comparatively low?

Regards
Steve
Click to expand...

Hi Steve,

yes when the volume comes in, the institutionals are there to buy or sell stock. That means if a stock breaks out, the odds for followthrough are higher!

-dave
 
Ed-Trade44 said:
Thanks again chaps, all the feedback is very helpful. (especially Dave, Lloyd and Pitbull - you guys have really got my thinking and at last I have a little more belief that success is a possibilty)

I have looked through many of the old posts (all in fact, much to my partners discontent at the late nights :rolleyes: ), and whilst they provide some really great information I am overwhelmed and left with the feeling that there is just something else that is missing and I can't put my finger on it.

For clues as to whether a setup will follow through I guess logically it has to be a combination of trades going through faster than normal (the tape) whether at the bid or the ask (long or short) with an increase in volume. I feel close to getting it but I can't seem to quite make it.
I guess others have been in this position and have pulled through, whereas many will get to this level and give up. I guess that's the old 90% failure stat for you.

Another one of the problems I do have is watching so many stocks. Even with 10 "movers" in my watchlist I find that inevitably it's the one stock that I didn't keep an eye on that moves well :devilish:

Sorry this has become a rambling dump of my thoughts, but I've invested so much time in this, that I will make it work out , whatever it takes.

Anyway guys thank so far, good weekend whats left of it.

Ed
Click to expand...

You should put alerts on your stocks. If you use esignal. To put in an alert right click on the right price in the chart and then click set alert. Works fine when you want to watch multiple stocks.

-Dave
 
Good evening all,
Great posts again from the usual traders, thanks.

Well what a day on Friday, I decided to have a go on the US stocks after a dull day in the UK.
I focused in on RIMM and AKAM for the morning session. I missed the first short signal on RIMM but waited for the long instead and got in at 191.99, it worked out well and gave me 102cents quite quickly. However this was poor relative to the move it made on the bounce. I must learn to let the US shares run free when they are going your way, because boy do they run!!
Unfortunately I then had 4 small losers in a row on RIMM whilst trying to be clever, which trimmed $600 from my first trade's profit, how annoying.
Anyhow after that I made one 23 cent scalp on AKAM with small size which just screamed trade me and called it a day while I was still in profit.
I knew I was feeling slightly angry at myself for making those 4 losers in a row. I normally take a step back after 2 in a row on the same stock, so I was pleased that I turned off the screen when I recognised the emotion.

My notes for next week:
1) US stocks run far far further than UK so don't be so keen to snatch profits, especially when there's solid volume pressing it your way.
2) Be more aware of position sizing for each stock relative to price and range.

Hope everyone's had a good weekend, looking forward to next week's trading.
 
Stock Split

Hi all,

Can someone please let me know as to how a 'stock split' might effect the price of a stock please? e.g. RIMM has announced a split of 2 shares for each share owned...

Many thanks

Raj
 
Thanks for that Dave.
Note to self for this (shorter) week. Learn to use the alerts in eSignal.

Hope all have a good week, all the best to our USA friends on their holiday :D

Ed
 
Volume

Morning All

Thanks for the response regarding volume Dave.

Wecolme Edd and The Captain - thanks for your contributions.

Regards
Steve
 
To Raj,

Definition of stock split:
When a stock is split in two, thus the stock price decreases, but the number of shares increases proportionately.

Now this does not mean that if the market takes a downward turn, and your stock prices drop that you have had a stock split. With a stock split the value of your stock remains intact.


For example, if you own 600 shares of a company that trades at $90 a share and the company declares a three for one stock split, you will own a total of 1800 shares at $30 a share after the split. So, the total value (number of shares time price per share) remains the same.

A stock split has no effect on the value of what shareholders own. This is true for dividends paid out as well, as these too will be divided proportionately.

So, if it has no effect on value.why would a company want to split their stock?
There are a few reasons:
1. Companies generally will split their stock when they believe the price of their stock exceeds the amount smaller investors would be willing to pay for the stock. So, to attract small, individual, investors.
2. This is pretty much the same things as number one, but it is to make their stock affordable to investors at every level.
3. To try and induce change in their current stock trade.

We will get into these more as we talk about what effect on price splitting stock has.

It is important to note that stocks can be split any way or in other words in any ratio. Most common is a two to one, but three for one, three for two, and so forth are fine, as long as the split is proportionate it does not really matter. Sometimes stock splits are referred to in percents. A 2:1 split is a 100% stock split; a 50% split would be a 3:2 split.

Now, let's get a little more into how this affects the price, other than the proportionate split in price, what happens? While theoretically a stock split is a non-event, as the total value, or fraction of the company owned (which is represented by the stocks) stays the same, the desired result is an increase in price.

Let's look at it this way, ordinarily a stock split will drive the new price per share up, as more of the public is attracted by the lower price, and buy the stock.

However, from there, the price tends to level off, as the goal of a stock split is generally to attract individual investors, not institutional ones. Institutional investors buy and sell more often than individuals, so making your stock attractive to individuals, makes it more stable.

So, in answer to what does a stock split do to the price, initially it lowers it, although for the current stockholders this is not a big deal as they have proportionately more shares. Then the price rises, which is caused by individual investors finding the stock more attractively priced, and thus in their price range. This is celebrated by pre-split shareholders. Then the price tends to level off, and the stock becomes fairly stable. While this is not true for every stock out there, it does hold true as a generality. So, stock splits are non-events that open up a way for individuals to be able to invest in that particular company, the value of the stocks change very little overall.
 
Hello all,
Positive start here. 40 and 33cents from Donald himself (TRMP). I wanted the 50 cent run to $11 but it started stalling around the 90's so I took half off and dragged the other half's stop up behind a "bot" on the bid which got pinged.
Also stopped for -2 cents on VMED. Dragged the stop up too tight too early. BUT it's gone into suspension now so it looks like a blessing in disguise, I'd have been pulling my hair out if I had a position. :eek:

I shouldn't have really got involved in VMED. Thank you market for the free lesson.

What's everyone else watching today?
 

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Yeah just wished I swung it now! But took a nice chunk a few times today.
 
Hello fellow traders,
Actually got a few trades today and was positive, yippee! (NVDA was one).
But out of my 5 trades my results were -7, +11, +2, +24, -12 for a gross gain of +18.

My problem is that I get very nervous after a few minutes and take all (or half) of my position off after say 10 cents move, only to watch the trade move a lot higher. How do you let the winners run as I sit and watch the trades in micro detail with my finger on the trigger ready to get out after only a few minutes. Very frustrating.

Thanks for your time and responses so far, I'm really learning a lot from these threads and it's making me question my actions which is no bad thing. :)

Ed
 
You can always place OCA orders ... one limit order for taking profit plus a stop loss order. If one is executed the other is automatically cancelled.

Having placed the orders, go for a walk or do something else.

Come back later and check the result.

As long as you are happy with your stop level, this is a relatively stress-free option.
 
Thanks for the replies. I do actually use OCA orders but even so I find myself in the midst of the trade watching every tick. However yesterday I was a bit better as I forced myself to minimise my order entry screen, so that I couldn't watch the action - easier said then done, but I bet it gets easier after time.

I am going to try and stay in trades longer as I've noticed that I exit sometimes, even during the same 5 minute bar which is crazy, and easy to see in hindsight that I'll never get larger moves that way.
A few trades on Tuesday, on a quiet day in my view with the US holiday.

JNPR in early pre 10am, only got +6, even though had +20 :(

IMMR, later in the morning session got, +15, and it went on for another +20, but can't complain.

One other, a scratch trade.

I'm finding this process very cathartic., so I'll try and keep it up.

Ed
 
dvdh said:
To Raj,

Definition of stock split:
When a stock is split in two, thus the stock price decreases, but the number of shares increases proportionately.

Now this does not mean that if the market takes a downward turn, and your stock prices drop that you have had a stock split. With a stock split the value of your stock remains intact.


For example, if you own 600 shares of a company that trades at $90 a share and the company declares a three for one stock split, you will own a total of 1800 shares at $30 a share after the split. So, the total value (number of shares time price per share) remains the same.

A stock split has no effect on the value of what shareholders own. This is true for dividends paid out as well, as these too will be divided proportionately.

So, if it has no effect on value.why would a company want to split their stock?
There are a few reasons:
1. Companies generally will split their stock when they believe the price of their stock exceeds the amount smaller investors would be willing to pay for the stock. So, to attract small, individual, investors.
2. This is pretty much the same things as number one, but it is to make their stock affordable to investors at every level.
3. To try and induce change in their current stock trade.

We will get into these more as we talk about what effect on price splitting stock has.

It is important to note that stocks can be split any way or in other words in any ratio. Most common is a two to one, but three for one, three for two, and so forth are fine, as long as the split is proportionate it does not really matter. Sometimes stock splits are referred to in percents. A 2:1 split is a 100% stock split; a 50% split would be a 3:2 split.

Now, let's get a little more into how this affects the price, other than the proportionate split in price, what happens? While theoretically a stock split is a non-event, as the total value, or fraction of the company owned (which is represented by the stocks) stays the same, the desired result is an increase in price.

Let's look at it this way, ordinarily a stock split will drive the new price per share up, as more of the public is attracted by the lower price, and buy the stock.

However, from there, the price tends to level off, as the goal of a stock split is generally to attract individual investors, not institutional ones. Institutional investors buy and sell more often than individuals, so making your stock attractive to individuals, makes it more stable.

So, in answer to what does a stock split do to the price, initially it lowers it, although for the current stockholders this is not a big deal as they have proportionately more shares. Then the price rises, which is caused by individual investors finding the stock more attractively priced, and thus in their price range. This is celebrated by pre-split shareholders. Then the price tends to level off, and the stock becomes fairly stable. While this is not true for every stock out there, it does hold true as a generality. So, stock splits are non-events that open up a way for individuals to be able to invest in that particular company, the value of the stocks change very little overall.
Click to expand...


Hi DVDH,

Thank you very much for the excellent analysis on Stock Split-this has helped me take an important decision on my RIMM stocks.

Cheers!

Raj
 
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