spunkyblonde
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i found a freind has the steve nison book ..he has had it 4 a long time ..i didnt relize how good the book was till you mentioned it thanks again des ..regards sally
liamfitz said:
I am still holding, 14 pts not incl the spread, I had a shock today, I put in a 100ma and saw that it was only $1 above yesterdays closing price so I am not expecting it to go much higher, looking on the bright side it could mean a nice short next week!!
Yesterday I went long BNI showing a reverse candle after a pullback, enter @ 53.89 with resistance at 56.
Happy trading.
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Hey Des, Really like your UCL, I see it gapped up on 3/3 with heavy vol and has been consolidating until as you say it had a break out yesterday again on good vol. the only neg I see is if the energy sector pulls back after a bullish run, but setting a trap and putting in our stop should take care of that.
Eddie.
Eddie.
Des,
Doing a really nice job with your videos and explanations mate. At the moment, I only trade index and currency futures with intra-day mechanical set-up but am looking at starting to expand into individual stocks. Got a few questions for you:
1) Do you liquidate all your position in a stock the day before it announces quarterly/semi/annual earnings?
2) Do you only look at stocks on the IBD 100 and if the stock then 'loses' its place in the next list, do you liquidate or do you make a judgement call on how the individual stock is looking in the chart - i guess its fairly self-fullfilling as if it still looks good on the chart, its not likely to lose its place in the list is it?
3) When you enter a trade, is the stop loss placed at the previous days low or again is it more of a discretionary decision?
Thanks
David
Doing a really nice job with your videos and explanations mate. At the moment, I only trade index and currency futures with intra-day mechanical set-up but am looking at starting to expand into individual stocks. Got a few questions for you:
1) Do you liquidate all your position in a stock the day before it announces quarterly/semi/annual earnings?
2) Do you only look at stocks on the IBD 100 and if the stock then 'loses' its place in the next list, do you liquidate or do you make a judgement call on how the individual stock is looking in the chart - i guess its fairly self-fullfilling as if it still looks good on the chart, its not likely to lose its place in the list is it?
3) When you enter a trade, is the stop loss placed at the previous days low or again is it more of a discretionary decision?
Thanks
David
des44
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Ivor: Thanks. What a great compliment. I checked out the "third" video about Vegas and it worked fine for me. It didn't stop prematurely for me. You might want to try it again. I would LOVE to visit the great country of England. Hopefully one day someone over there (or group of people) will see the benefit of having me sit with them one-on-one (or one-on-three or four) for four consecutive days while I mentor them. That would be the greatest and the PERFECT excuse to visit one of the greatest countries on earth.
Eddie, Agreed. I will watch UCL close for a reversal candlestick and I will tighten my stop to preserve profits. With the broad markets rally on Monday I'll expect this energy stock to fall.
d-
Eddie, Agreed. I will watch UCL close for a reversal candlestick and I will tighten my stop to preserve profits. With the broad markets rally on Monday I'll expect this energy stock to fall.
d-
des44
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Hey David,
Thanks for the kind words.
1) Do you liquidate all your position in a stock the day before it announces quarterly/semi/annual earnings? I find it better to actually tighten my stop-loss on the stock. In this case I am still in it if it still has legs to head north. By just selling the day before, which many people do (and I applaud), they have no chance at benefiting from the 20% of stocks that shoot up after an earnings date. I am willing to chance a small part of my profits in hopes that it will gain me additional profits.
2) Do you only look at stocks on the IBD 100 and if the stock then 'loses' its place in the next list? No. As you referred to, if it looks good technically I am committed to it until it proves to me otherwise. I use the list as my primary "hot-pick list" and nothing else beyond that.
3) When you enter a trade, is the stop loss placed at the previous days low or again is it more of a discretionary decision? When playing up-trending stocks (bouncing off the 20dma) I always place my stop-loss just under the low of the immediate previous swing-low. This area should act as a support area and I like giving my stocks room to run opposed to running scared and having my stops smother any would-be profits. If the stock does fall AND is powerful enough to drop below it's previous swing-low the stock has probably just reversed its trend and I do not want to be long in it any longer. I would start looking for a shorting opportunity once it broke the 50dam. When it breaks the 50dma the big boys (institutions) start to get nervous and when they start leaving a stock they can cause blood to run in the streets.
d-
Thanks for the kind words.
1) Do you liquidate all your position in a stock the day before it announces quarterly/semi/annual earnings? I find it better to actually tighten my stop-loss on the stock. In this case I am still in it if it still has legs to head north. By just selling the day before, which many people do (and I applaud), they have no chance at benefiting from the 20% of stocks that shoot up after an earnings date. I am willing to chance a small part of my profits in hopes that it will gain me additional profits.
2) Do you only look at stocks on the IBD 100 and if the stock then 'loses' its place in the next list? No. As you referred to, if it looks good technically I am committed to it until it proves to me otherwise. I use the list as my primary "hot-pick list" and nothing else beyond that.
3) When you enter a trade, is the stop loss placed at the previous days low or again is it more of a discretionary decision? When playing up-trending stocks (bouncing off the 20dma) I always place my stop-loss just under the low of the immediate previous swing-low. This area should act as a support area and I like giving my stocks room to run opposed to running scared and having my stops smother any would-be profits. If the stock does fall AND is powerful enough to drop below it's previous swing-low the stock has probably just reversed its trend and I do not want to be long in it any longer. I would start looking for a shorting opportunity once it broke the 50dam. When it breaks the 50dma the big boys (institutions) start to get nervous and when they start leaving a stock they can cause blood to run in the streets.
d-
ddunne82 said:
roguetrader
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des44 said:
Hi des, isn't there a reasonable risk that your stock will miss badly and or guide badly and blow right through your stop out of hours to open significantly below. I would have thought that a stock that had run nicely would breed much higher public expectation and therefore fall all the harder, (been there in a former life
) You could unload a significant proportion of your position truely locking in the profit you had made while still holding a percentage for that trip to orbit should it come..In truth I am more curious why you don't do this, than actually offering a suggestion, as you seem to be an accomplished trader and I'm sure you have a great reason for the way you do it. Just explaining it like a suggestion better illustates what I am getting at......I hope. :cheesy:
des44
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Hey Rogue,
I haven't heard from you in awhile. I hope all is well. You make an excellent point. To unload a significant portion of one's position is a great way to play earning dates. My style of trading and train of thought is BECAUSE I trade fundamentally STRONG stocks the odds are in my favor that my stock will continue to meet if not exceed expectations I want every dollar working for me to maximize any would-be profits that are still there to benefit by. So far, (and I stress "SO FAR") it has been seldom that I've seen one of my IBD picks gap down on me significantly over earnings. I am certainly NOT saying this can't happen--just that it hasn't thus far. To date, the benefits of keeping my position in tact over earnings has paid nice gains.
Keep in touch,
Des
I haven't heard from you in awhile. I hope all is well. You make an excellent point. To unload a significant portion of one's position is a great way to play earning dates. My style of trading and train of thought is BECAUSE I trade fundamentally STRONG stocks the odds are in my favor that my stock will continue to meet if not exceed expectations I want every dollar working for me to maximize any would-be profits that are still there to benefit by. So far, (and I stress "SO FAR") it has been seldom that I've seen one of my IBD picks gap down on me significantly over earnings. I am certainly NOT saying this can't happen--just that it hasn't thus far. To date, the benefits of keeping my position in tact over earnings has paid nice gains.
Keep in touch,
Des
roguetrader said:Hi des, isn't there a reasonable risk that your stock will miss badly and or guide badly and blow right through your stop out of hours to open significantly below. I would have thought that a stock that had run nicely would breed much higher public expectation and therefore fall all the harder, (been there in a former life
In truth I am more curious why you don't do this, than actually offering a suggestion, as you seem to be an accomplished trader and I'm sure you have a great reason for the way you do it. Just explaining it like a suggestion better illustates what I am getting at......I hope. :cheesy:
roguetrader
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Fair play des, thanx for the reply. I knew theere would be a sound reason behind your approach, and understand what you are saying. Yes everythings fine with me, still haven't got round to any serious swing trading positions yet, still paper trading a few ideas on those. Though I did have a cowards punt, I say that because it seemed a fairly safe bet at the time, and in hindsight was, Went long OIH in early Jan on a break back above 50 day sma and got stopped out early last month when it dropped below the 20. Missed my re-entry though on the 31st, gap and go, still not to worry. Watching the homebuilders for long term shorts.
Intraday is going nicely, some good range back in the market lately, lot of chop there for a while.
Anyways, good talkin again trade well
I say that because it seemed a fairly safe bet at the time, and in hindsight was, Went long OIH in early Jan on a break back above 50 day sma and got stopped out early last month when it dropped below the 20. Missed my re-entry though on the 31st, gap and go, still not to worry. Watching the homebuilders for long term shorts.Intraday is going nicely, some good range back in the market lately, lot of chop there for a while.
Anyways, good talkin again trade well
des44 said:
Lots of information here, at the beginning of the video I did a quick look down the chart asyou were asking the question, the first thing that struck me was where the MACD was heading (down), the 2nd thing I noticed was the divergence between the 20& 50ma.
I think this video is worth a.......words.
Eddie.
My interpretation of the CTSH chart would be as follows:
1) The reversal candle's volume was less than the previous candles which would make me slightly nervous about taking the trade and would thus wait for the next candle to confirm the reversal (higher close on higher volume - a nice lower wick wouldn't go amiss either)
2) MACD recently crossed to the negative side so again lengthening your odds of success
3) Price made a higher high but CCI has negative divergence (could also argue RSI also displays this) - i would further argue that this divergence is quite strong because it has happened over 3 peaks
I'm sure everyone is going to see/interpret different things in the chart but what better way to learn than to throw your ideas out there!
David
1) The reversal candle's volume was less than the previous candles which would make me slightly nervous about taking the trade and would thus wait for the next candle to confirm the reversal (higher close on higher volume - a nice lower wick wouldn't go amiss either)
2) MACD recently crossed to the negative side so again lengthening your odds of success
3) Price made a higher high but CCI has negative divergence (could also argue RSI also displays this) - i would further argue that this divergence is quite strong because it has happened over 3 peaks
I'm sure everyone is going to see/interpret different things in the chart but what better way to learn than to throw your ideas out there!
David
