just make sure you have a stop in place if you are short.
That 50% Fib might have been the top, however there was also no
divergence, so watch to see if previous resistance becomes
support. The H&S pattern measures to 900 and the 61.8%
Fib is 890
Posted by junkmaylbox on 28th of Jan 2009 at 03:50 pm
matt, you are right. I have little luck with choosing stop sizes
for those issues, so I'm going to position trade them. I will sell
if 877 is lost or we rest the breakout line. I cannot find anything
more intelligent in this situation. If you have any suggestions, I
am all ears.
Posted by dallassteve on 28th of Jan 2009 at 03:43 pm
Thanks Matt. Beautiful charts. Yes, very tricky
market, as cspirit says. It is good to see the market start
to do something. I've got tight stops, and will be looking forward
to your commentary later tonight.
One way to play this is to use smaller share sizes and larger
stops. It appears to me market makers know right where stops
should be placed and are running them both ways (Short/Long)
Remember they only make money doing trades not like us.
There goal is to do as many buy/sell orders as they can.
I've done better past month trading smaller amounts and wider
stops.
I place it based on where support is if going long. I then
figure out how much money I want to use and then figure out how
much to risk. I try not to risk more than 5%-8%
capital.
Example UNG
I did 500 shares today at $18.10. Support was like
$18.20. I placed my market limit sell stop at $17.35
GTC. It's far enough down that sell stops won't hit it only
to head higher.
So 9K cashed used risking $375 dollars on 9K investment or
little bit over 4% of the 9K. Once I get couple dollar gain I
will move stop up .50cents.
losing 866
unless you believe we started
Posted by junkmaylbox on 28th of Jan 2009 at 03:25 pm
It's almost there. By your request :-)
SPX 30 min chart.png SPX 60
Posted by matt on 28th of Jan 2009 at 03:36 pm
just make sure you have a stop in place if you are short. That 50% Fib might have been the top, however there was also no divergence, so watch to see if previous resistance becomes support. The H&S pattern measures to 900 and the 61.8% Fib is 890
matt, you are right. I
Posted by junkmaylbox on 28th of Jan 2009 at 03:50 pm
matt, you are right. I have little luck with choosing stop sizes for those issues, so I'm going to position trade them. I will sell if 877 is lost or we rest the breakout line. I cannot find anything more intelligent in this situation. If you have any suggestions, I am all ears.
Darn! filled and order for
Posted by Jim on 28th of Jan 2009 at 03:43 pm
Darn! filled and order for SRS at 50.25, right after I read this and was trying to cancel...LOL
Thanks Matt. Beautiful charts. Yes,
Posted by dallassteve on 28th of Jan 2009 at 03:43 pm
Thanks Matt. Beautiful charts. Yes, very tricky market, as cspirit says. It is good to see the market start to do something. I've got tight stops, and will be looking forward to your commentary later tonight.
IDEA?
Posted by cspirit on 28th of Jan 2009 at 03:51 pm
One way to play this is to use smaller share sizes and larger stops. It appears to me market makers know right where stops should be placed and are running them both ways (Short/Long)
Remember they only make money doing trades not like us. There goal is to do as many buy/sell orders as they can.
I've done better past month trading smaller amounts and wider stops.
Just passing this along as an IDEA only.
Chris, what is a wide
Posted by junkmaylbox on 28th of Jan 2009 at 03:59 pm
Chris, what is a wide stop in your definition? 15, 20%?
I place it based on
Posted by cspirit on 28th of Jan 2009 at 04:06 pm
I place it based on where support is if going long. I then figure out how much money I want to use and then figure out how much to risk. I try not to risk more than 5%-8% capital.
Example UNG
I did 500 shares today at $18.10. Support was like $18.20. I placed my market limit sell stop at $17.35 GTC. It's far enough down that sell stops won't hit it only to head higher.
So 9K cashed used risking $375 dollars on 9K investment or little bit over 4% of the 9K. Once I get couple dollar gain I will move stop up .50cents.
This is how I do it. Money Management
Thanks, Chris. So you use
Posted by junkmaylbox on 28th of Jan 2009 at 04:24 pm
Thanks, Chris. So you use regular size stops (4 to 6% is what books would recommend). A wide stop would mean at least 10% to me.