How do you play the trades on the watchlist? Do you wait for the
picks to clos up or down outside of what ever pattern you are
shoeing, before entering?
First off trade ideas show up on the watchlist as
well as on the 'Trade Ideas' list on the Blog (top right hand
side). Generally I try to put the better setups on the
watchlist since those are more geared toward swing trading, but
there is a lot of overlap as well.
Also realize that there is no set way to play our trade ideas:
Think of them as just that, Trade Ideas for you to pick and
choose from and trading according to your personal risk tolerance
and trading style: Now what do I mean by this? Well depending
on if you are a fast day trader or swing trader, you would use
different stops as well as price targets that fit your style, or
you could do a combination of both, witch is what I do. I
like to buy the stocks and trade out of a large percentage in one
day for a day trade, however I will also hold a small piece for a
swing trade from time to time i.e. I might buy a stock and sell 80%
of it in one day if it has a good move, and keep only 20% for a
runner.
For long trades I like to play the ones taking the best volume
as they seem to have a better percent chance to work out. I
dont' trade all of the ideas and I dont' expect anyone to do this
either. Trade 3 - 5 or whatever you are comfortable with and ignore
the rest. Again just think of them as trade ideas, a list to
pick and choose from.
As far as trading them; there are multiple ways to do this as
well: You might buy a long stock after it breaks a resistance
level on strong volume, or you might instead buy at support way
before it breaks out so that you can set a tight stop, or do a
combination of the two. The stock you mentioned, RJET, nice
move for sure, but it's been on the trade ideas list since last
week, one could have traded this multiple ways, such as buying
early last week below the trendline break, Steve and I often
buy the stocks early if we really like them because most of the
time they end up breaking out anyway and therefore the odds are in
our favor. I personally didn't buy RJET last week, but I'm
kicking myself for not doing that because I really liked the
pattern a lot. Personally I do not like to chase a stock that
has already broken out unless I get some kind of light volume
pullback
The watchlist is not a model portfolio, it's simply a list of
ideas to choose from and manage on your own. Since every
trader is different and has different risk tolerances and trading
styles, it's best for them to use the trade ideas list to pick and
choose from, we spend the hrs it takes scanning and looking fro the
setups, you choose to trade them.
RJET
RJET Update
Posted by wjrichard on 27th of Jun 2011 at 10:26 am
How do you play the trades on the watchlist? Do you wait for the picks to clos up or down outside of what ever pattern you are shoeing, before entering?
I would appreciate some coaching on this!
Bill
Title: wjrichard - click to
Posted by matt on 27th of Jun 2011 at 10:42 am
Hello Richard and welcome!
Well your question is not a quick easy one line answer. The first thing I would do is read the watchlist FAQ
http://breakpointtrades.com/market_analysis/content/weekend/270/
First off trade ideas show up on the watchlist as well as on the 'Trade Ideas' list on the Blog (top right hand side). Generally I try to put the better setups on the watchlist since those are more geared toward swing trading, but there is a lot of overlap as well.
Also realize that there is no set way to play our trade ideas: Think of them as just that, Trade Ideas for you to pick and choose from and trading according to your personal risk tolerance and trading style: Now what do I mean by this? Well depending on if you are a fast day trader or swing trader, you would use different stops as well as price targets that fit your style, or you could do a combination of both, witch is what I do. I like to buy the stocks and trade out of a large percentage in one day for a day trade, however I will also hold a small piece for a swing trade from time to time i.e. I might buy a stock and sell 80% of it in one day if it has a good move, and keep only 20% for a runner.
For long trades I like to play the ones taking the best volume as they seem to have a better percent chance to work out. I dont' trade all of the ideas and I dont' expect anyone to do this either. Trade 3 - 5 or whatever you are comfortable with and ignore the rest. Again just think of them as trade ideas, a list to pick and choose from.
As far as trading them; there are multiple ways to do this as well: You might buy a long stock after it breaks a resistance level on strong volume, or you might instead buy at support way before it breaks out so that you can set a tight stop, or do a combination of the two. The stock you mentioned, RJET, nice move for sure, but it's been on the trade ideas list since last week, one could have traded this multiple ways, such as buying early last week below the trendline break, Steve and I often buy the stocks early if we really like them because most of the time they end up breaking out anyway and therefore the odds are in our favor. I personally didn't buy RJET last week, but I'm kicking myself for not doing that because I really liked the pattern a lot. Personally I do not like to chase a stock that has already broken out unless I get some kind of light volume pullback
The watchlist is not a model portfolio, it's simply a list of ideas to choose from and manage on your own. Since every trader is different and has different risk tolerances and trading styles, it's best for them to use the trade ideas list to pick and choose from, we spend the hrs it takes scanning and looking fro the setups, you choose to trade them.
also
Posted by tom on 27th of Jun 2011 at 10:46 am
Allow me to also add the link:
http://breakpointtrades.com/market_lab/index.php/content/new_watch_list/
which also has data and a write up of how I envision the list is used.