two examples of how to trade our setups, and using stops

    Posted by matt on 12th of Oct 2020 at 01:58 pm

    again I'm in the process of working on an educational video and newsletter on trading our trade ideas, here's a couple examples.  

    for one I think it will help folks to also reference 60 min charts - to me entries and especially stops areas show up a lot better. My method, will be different for you, is the sell some shares on the first move and if I am swinging I'll keep some shares and trail my stops up to higher lows (esp the 60 min charts, or things like 9 EMA or trendlines etc. Now many times I make less money than if I just held all my shares especially on our trade ideas that have huge runs because I sell a good portion too early. But that's my style, fits with my psychology.  For you maybe you want to do all or none and not scale sale. Both approaches are valid

    Also when I enter a position I place a stop! Also my stops are GTC stop orders NOT Stop limit orders!

    Here's a couple examples:  XBI daily and 60 min, notice how clear it was where I place my initial stop even if I bought the trendline break. I have to give it that much room if I intend to swing vs having it too night where I stop out on noise. Notice I could then have raised my stop up two more times. Now there's some MACD divergence

    Next here's an example on the ZYXI where someone stopped out today.  The first thing to note the trade was up 10% prior to today's news. One of my rules is I sell 1/2 after a 10% move. See the daily and 60 min chart. Notice on the 60 min chart where your initial stop would have been at the higher low. Then a 2nd stop, and finally a 3rd stop WAY higher. That 3rd stop would have been hit this morning on the gap down. A stop limit order would not have been triggered but a regular stop would have stopped you out VERY profitably 

    again to be a successful trader you have to incorporate some sort of disciplined style and approach.

    Hey Matt, thanks for this

    Posted by rfmathis on 12th of Oct 2020 at 04:15 pm

    Hey Matt, thanks for this excellent education piece.  Placing stops have been a little hazy for me; but, this allows me to "tweak my plan" in this area.  Perhaps it may not signal quite as fast, but I like to give my swings a little more room.  So, I use the 2-Hour timeframe for stops.  Maybe I don't make quite as much; but, I find I don't have to monitor and update my portfolio quite as often.  I typically look at the 9ema, and the 2-hour higher low and take the one that gives the most room.   (Just me....)

    Super to hear - use

    Posted by steve on 12th of Oct 2020 at 04:22 pm

    Super to hear - use what works best for you.  It's not about how much one makes - that will vary but about being comfortable with your style.   The KEY is to make OBJECTIVE ENTRIES and not chase. 

    Yes - you will find

    Posted by steve on 12th of Oct 2020 at 02:06 pm

    Yes - you will find that trailing up stops based upon higher lows on 60 minute charts often corresponds to the small daily moving averages.   Notice the shooting star candle that formed on the 60 minute chart during the last hour on Friday with negative divergence - at a minimum that's an attention grabber to be on alert for the next trading day. 

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