FTSE 350 Spreadbet Journal

think-it-thru

Active member
Jan 22, 2008
184
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#91
Have a look at these approaches to the market. These are approaches not "systems" so use your discretion. Remember the toughest nut to crack is yourself. Apologies for the amount of material to be read but you may feel it worth it after summing up the courage to plough through it. Good luck.:)

(I know it refers to forex but price action also applies to other traded instruments)

No need to spend money - just read the free content (that, alone, will take up a few winter evenings:D ).
http://www.trade2win.com/boards/forex-strategies-systems/135906-forex-trading-approaches.html
Good luck and take it slowly - always know what you are risking before trading (use stops).
Thank you Neil for your reply , I will check that information out.
Its nice to get feedback, thank you again.
 

think-it-thru

Active member
Jan 22, 2008
184
1
28
#93
I had another short stopped out at a loss
MNDI
With hindsight, I had 19 shorts and 2 longs and I "thought" the market was going down.
However I should have hedged with more longs perhaps.
 

isatrader

Well-known member
Oct 20, 2010
2,926
126
73
#97
My DRX long was stopped out at a loss.

The Vix is high, markets rallying with less volume, are we due for a correction?
Do you mind if I ask your reasons for going long DRX and and at what price?

A correction is possible in the short term as multiple markets are testing key levels and have got a little extended. However, that doesn't guarantee that it will happen at all or that it will be anything more than a pullback to value if it does. You just need to watch how prices react at these key levels and react accordingly.

I'm a big fan of market breadth and look at a number of charts every week to help gauge market participation. Currently 83% of stocks are above their 50 day moving average, 70% are above their 150 day moving average and 58% are above their 200 day moving average in the entire New York Stock Exchange. All of these figures have been gradually rising since December. So in the short term the market is very near the top of it's range, however, it doesn't mean it can't stay in this range for a while as you can see from the charts below, and continue to move higher as the medium term moving averages show that that they have plenty of room still. But what it does show is that risk is higher in the short term so you need to be cautious imo and have a plan for how you will deal with a correction if it does happen.
 

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think-it-thru

Active member
Jan 22, 2008
184
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#98
Do you mind if I ask your reasons for going long DRX and and at what price?

A correction is possible in the short term as multiple markets are testing key levels and have got a little extended. However, that doesn't guarantee that it will happen at all or that it will be anything more than a pullback to value if it does. You just need to watch how prices react at these key levels and react accordingly.

I'm a big fan of market breadth and look at a number of charts every week to help gauge market participation. Currently 83% of stocks are above their 50 day moving average, 70% are above their 150 day moving average and 58% are above their 200 day moving average in the entire New York Stock Exchange. All of these figures have been gradually rising since December. So in the short term the market is very near the top of it's range, however, it doesn't mean it can't stay in this range for a while as you can see from the charts below, and continue to move higher as the medium term moving averages show that that they have plenty of room still. But what it does show is that risk is higher in the short term so you need to be cautious imo and have a plan for how you will deal with a correction if it does happen.
Hello there isatrader
Thank you for your reply
No of course i dont mind you asking, I will be glad of any feedback.

My reasons for going long DRX
I think it is in a good sector
Energy prices were rising until the govmt. put a cap on prices.
It has less debt than profit or turnover.
It has rising div and profit in the last year.
The price moves above the 200dma in Dec 2010.
I had a look thru the news stories and company reports ans they seemed positive.

On the 4th 12 2011 i places a buy stop at 565.83 which was close to the recent high on the 29th Nov which closed at 567.95 and put a stop loss at 511.57 which was fairly well below the previous s/r levels of 530ish.

Im not sure wether to put another buy stop in at the 525 level, now that the price has just bounced up from near the 200dma level.
The prices I quote are from cityindex
 

isatrader

Well-known member
Oct 20, 2010
2,926
126
73
#99
My reasons for going long DRX
I think it is in a good sector
Energy prices were rising until the govmt. put a cap on prices.
It has less debt than profit or turnover.
It has rising div and profit in the last year.
The price moves above the 200dma in Dec 2010.
I had a look thru the news stories and company reports ans they seemed positive.

On the 4th 12 2011 i places a buy stop at 565.83 which was close to the recent high on the 29th Nov which closed at 567.95 and put a stop loss at 511.57 which was fairly well below the previous s/r levels of 530ish.

Im not sure wether to put another buy stop in at the 525 level, now that the price has just bounced up from near the 200dma level.
The prices I quote are from cityindex
Am a little confused by when you say it moved through the 200dma in December as, as you can see on the chart attached it was a long way above it still? Did you mean the 20dma moving average? Anyway, I agree with you that at the time the sector choice was good and it was retesting it's breakout level from October. And your stop position was fine, as was below a decent amount of support, so even though you lost, it seems like a good trade to me as you followed your plan and were stopped out at your planned exit point.
 

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think-it-thru

Active member
Jan 22, 2008
184
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Am a little confused by when you say it moved through the 200dma in December as, as you can see on the chart attached it was a long way above it still? Did you mean the 20dma moving average? Anyway, I agree with you that at the time the sector choice was good and it was retesting it's breakout level from October. And your stop position was fine, as was below a decent amount of support, so even though you lost, it seems like a good trade to me as you followed your plan and were stopped out at your planned exit point.
Thank you for your reply isatrader.
As I am learning by myself here, as in im reading books, pdfs, looking at videos etc.
I have not been to any training seminars or anything like that. So its nice to hear that it wasnt a bad trade, even though the market told me I was wrong.

When I was on about the 200dma I meant Dec 2010 as in the price crossed it then so I could see that it was in a fairly long term uptrend from then.

Im still not sure about getting in again on DRX
 

isatrader

Well-known member
Oct 20, 2010
2,926
126
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Im still not sure about getting in again on DRX
I always personally like to put a stock into the penalty box for a while after I've been stopped out as the way I see it is that the market has told me I was wrong in my judgement, and the markets always right. So I should move on for the time being and put my money elsewhere, but maybe keep the stock in my watchlist and revisit at a later date. If it turns out to be a shakeout and reverses back up and continues on the original trend then there will be another chance to get in on a later pullback.
 

think-it-thru

Active member
Jan 22, 2008
184
1
28
I always personally like to put a stock into the penalty box for a while after I've been stopped out as the way I see it is that the market has told me I was wrong in my judgement, and the markets always right. So I should move on for the time being and put my money elsewhere, but maybe keep the stock in my watchlist and revisit at a later date. If it turns out to be a shakeout and reverses back up and continues on the original trend then there will be another chance to get in on a later pullback.
Thank you isatrader