Posted by bravestar on 12th of Jan 2016 at 12:29 pm
I bought the SMH XLK XLY per the video over yesterdays highs ,
the orders hit and dropped. What do you think i should do or
should have done. I still holding them.
the difficult thing was that most of these gapped over their
entry points, and some like XLY almost tagged their 9 EMA, which is
the target generally for that type of RVM trade setup.
otherwise, again when those trade types are entered one should
always place stops in, widest stops could be at the low of
yesterday's doji, as you can see on XLK here, which means someone
following that would simply have stops in place and still be in.
again lot of ways to skin the cat. I have to get back
to focusing on other things as I think I covered this
In this volatile market things like that can happen.
you need to trade your plan. For example, one person who
works a job could have bought one of those RVM setups ETF's like
XLK or SOXX and then simply set a stop at yesterday's candle low,
which means they would still be in the trades with stops in place,
so even though they have pulled back, they are still in the trade
with stops and defined risk.
Others who can watch the market during the day could have sold
and been out. that's what he means by your plan, it's not the
same for everyone.
The RVM trades do have a max defined risk because stops
can go at the low of the candle. But again if you are intra
day you may decide to reverse hat quickly when the SPX reversed off
resistance and stopped out , really just depends what kind of
trader you are
Posted by bravestar on 12th of Jan 2016 at 12:53 pm
I am still in, I overdid it with the bounce this morning so I
have to get out of some
Reply: If you overdid as you say then why not sell some into the
early move? At least on XLY which moved higher. SMH was a gap
and fade..no entry intraday.
Posted by bravestar on 12th of Jan 2016 at 01:51 pm
I put the order in pre market for SMH for limit price above
yesterdays high and I put the stop limit at about 5 cents higher,
it filled as soon as the market opened and started to drop. I did
not expect that. I do not usually put orders in premarket. I should
have sold XLY when it went up. I did not expect that either, and i
forgot about the 9 ema target and was happy it was going up. you
dont have to answer right away.
Answer: Well, the market gapped up this morning so you shouldn't
have been surprised. Again, stick to your plan at the time of entry
and adhere to your stops as it relates to your plan.
Second Reply: Please note one additional thing..the SMH is not
the SOX (they are different).
Nothing more to say as we have addressed your questions
thoroughly below..trade your plan. Also, it's best to send
specific questions via a private message versus posting on the blog
going forward. This helps to keep the blog clear for market
information which best serves everyone.
bravestar...you should trade your PLAN and adhere to your stops
based upon your objectives and risk tolerance. I posted
resistance levels all morning on the SPX for guides. Do NOT trade
without a plan in place..at the point of entry you set your initial
stops and adjust accordingly (to your style). The market
gapped up today and one could have reverted to a 15 minute rule or
whatever works for you after a gap. Chasing entries after gaps in
downtrends is NOT advised without close monitoring.
XLY moved up near it's 9 day EMA (initial target) for a quick
trade and then faded. More later as I have to monitor the
markets. Most things are still oversold BUT must see a higher
low.
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XLK etc SMH
Posted by bravestar on 12th of Jan 2016 at 12:29 pm
I bought the SMH XLK XLY per the video over yesterdays highs , the orders hit and dropped. What do you think i should do or should have done. I still holding them.
the difficult thing was that
Posted by matt on 12th of Jan 2016 at 12:56 pm
the difficult thing was that most of these gapped over their entry points, and some like XLY almost tagged their 9 EMA, which is the target generally for that type of RVM trade setup.
otherwise, again when those trade types are entered one should always place stops in, widest stops could be at the low of yesterday's doji, as you can see on XLK here, which means someone following that would simply have stops in place and still be in. again lot of ways to skin the cat. I have to get back to focusing on other things as I think I covered this
thank you
Posted by bravestar on 12th of Jan 2016 at 01:03 pm
Andrea...I discussed all these points
Posted by steve on 12th of Jan 2016 at 01:04 pm
Andrea...I discussed all these points in the tutorial but you must apply in your trading.
In this volatile market things
Posted by matt on 12th of Jan 2016 at 12:43 pm
In this volatile market things like that can happen.
you need to trade your plan. For example, one person who works a job could have bought one of those RVM setups ETF's like XLK or SOXX and then simply set a stop at yesterday's candle low, which means they would still be in the trades with stops in place, so even though they have pulled back, they are still in the trade with stops and defined risk.
Others who can watch the market during the day could have sold and been out. that's what he means by your plan, it's not the same for everyone.
The RVM trades do have
Posted by matt on 12th of Jan 2016 at 12:46 pm
The RVM trades do have a max defined risk because stops can go at the low of the candle. But again if you are intra day you may decide to reverse hat quickly when the SPX reversed off resistance and stopped out , really just depends what kind of trader you are
thanks I understand what u mean
Posted by bravestar on 12th of Jan 2016 at 12:53 pm
I am still in, I overdid it with the bounce this morning so I have to get out of some
Reply: If you overdid as you say then why not sell some into the early move? At least on XLY which moved higher. SMH was a gap and fade..no entry intraday.
XLK etc SMH
Posted by bravestar on 12th of Jan 2016 at 01:51 pm
I put the order in pre market for SMH for limit price above yesterdays high and I put the stop limit at about 5 cents higher, it filled as soon as the market opened and started to drop. I did not expect that. I do not usually put orders in premarket. I should have sold XLY when it went up. I did not expect that either, and i forgot about the 9 ema target and was happy it was going up. you dont have to answer right away.
Answer: Well, the market gapped up this morning so you shouldn't have been surprised. Again, stick to your plan at the time of entry and adhere to your stops as it relates to your plan.
Second Reply: Please note one additional thing..the SMH is not the SOX (they are different).
Nothing more to say as
Posted by steve on 12th of Jan 2016 at 01:52 pm
Nothing more to say as we have addressed your questions thoroughly below..trade your plan. Also, it's best to send specific questions via a private message versus posting on the blog going forward. This helps to keep the blog clear for market information which best serves everyone.
bravestar...you should trade your PLAN
Posted by steve on 12th of Jan 2016 at 12:33 pm
bravestar...you should trade your PLAN and adhere to your stops based upon your objectives and risk tolerance. I posted resistance levels all morning on the SPX for guides. Do NOT trade without a plan in place..at the point of entry you set your initial stops and adjust accordingly (to your style). The market gapped up today and one could have reverted to a 15 minute rule or whatever works for you after a gap. Chasing entries after gaps in downtrends is NOT advised without close monitoring.
XLY moved up near it's 9 day EMA (initial target) for a quick trade and then faded. More later as I have to monitor the markets. Most things are still oversold BUT must see a higher low.