TheRumpledOne
6,529 posts
msg #61489
- Ignore TheRumpledOne |
4/15/2008 12:53:19 AM
Drew:
You take what you can get.
Nice thing is the way RIMM goes up/down all day, you usually get more than one chance.
RIMM likes to close the gap, so the first trade is usually a FADE THE GAP trade.
There is no reason to lose 3% - 5% on a stock like RIMM during normal trading.
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maxreturn
745 posts
msg #61495
- Ignore maxreturn |
4/15/2008 10:24:42 AM
TRO....just to clarify you're saying that you do not put a trailing stop in the market and you take profit at a predetermined level?
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drew9
171 posts
msg #61503
- Ignore drew9 |
4/15/2008 3:13:59 PM
TRO, my issue is that I do not trade for a living yet. I have automated trading software that allows me to buy at whatever level and take profits, trail profits and set stop losses accordingly. I prefer to take the emotions out of it. However, not being able to watch this all day means a stop loss is needed. Just wondered how you were doing it. I certainly like the percentages here but you have to account for those few losers and the question is how much to allow?
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TheRumpledOne
6,529 posts
msg #61504
- Ignore TheRumpledOne |
4/15/2008 3:51:31 PM
4/14/08 RIMM DAILY RSI(2) = 19.47
4/15/08 RIMM OPEN 116.59, HIGH 117.24
Another $.50 pop.
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TheRumpledOne
6,529 posts
msg #61505
- Ignore TheRumpledOne |
4/15/2008 3:52:57 PM
maxreturn
TRO....just to clarify you're saying that you do not put a trailing stop in the market and you take profit at a predetermined level?
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NO TRAILING STOP. I look to take a dime or more. 1000 shares times $.10 = $100 GP
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TheRumpledOne
6,529 posts
msg #61506
- Ignore TheRumpledOne
modified |
4/15/2008 3:56:28 PM
drew9
TRO, my issue is that I do not trade for a living yet. I have automated trading software that allows me to buy at whatever level and take profits, trail profits and set stop losses accordingly. I prefer to take the emotions out of it. However, not being able to watch this all day means a stop loss is needed. Just wondered how you were doing it. I certainly like the percentages here but you have to account for those few losers and the question is how much to allow?
==================================================
Losers? If you focus on losing, then you'll lose.
Is every trade a winner? NO!
But two traders can be trading the same stock all day long. One wins and the other loses. What is the reason?
To me, it is simple:
THE HIGH IS USUALLY HIGHER THAN THE OPEN.
Buy at/near the open, at/near the open price and wait for the opportunity to make money.
When you trade the same stock, over and over and over again, it becomes ROUTINE.
How much loss to allow? Money management dictates that. You really don't want to take too many steps backwards nor do you want to be knocked out of the game.
If you are up $1,000 closed profit and down $500 open profit, then you have just given back 50% of your winnings.. time to bail and quit for the day.
If your open profit is a loss of twice your average winnings, time to bail and quit. YOU HAVE JUST TAKEN 2 STEPS BACK.
Nothing fancy, just common trading sense rule of thumb.
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drew9
171 posts
msg #61519
- Ignore drew9 |
4/15/2008 11:27:05 PM
I agree TRO. Wish I could watch it like you but I cannot at this point. So I utilize software where I can set the parameters and try and squeeze out as much as possible. When you cannot watch it all day, stops become part of a needed common sense trading plan - especially with the volatile stocks like RIMM. Thanks for passing along your method.
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luc1grunt
622 posts
msg #61521
- Ignore luc1grunt |
4/16/2008 7:37:08 AM
If you place a hard stop on RIMM, AAPL, GOOG, BIDU...better make it wide or it will get run. Look at the ADR on these. Mechanical stops add unecessary risk for intra-day scalps/swings. If you must, widen the stop and lower the shares as needed.
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TheRumpledOne
6,529 posts
msg #61544
- Ignore TheRumpledOne
modified |
4/16/2008 9:44:15 PM
luc1grunt
If you place a hard stop on RIMM, AAPL, GOOG, BIDU...better make it wide or it will get run. Look at the ADR on these. Mechanical stops add unecessary risk for intra-day scalps/swings. If you must, widen the stop and lower the shares as needed.
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If you wait for STATISTICAL setups, like RIMM DAILY < RSI(2), then you can just set your TP. Yes, it could run against you but the stats are in your favor so long as your TP is NOT too greedy.
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luc1grunt
622 posts
msg #61545
- Ignore luc1grunt |
4/17/2008 7:16:26 AM
Stats are in your favor.
My post was in regrads to the poster not available to watch the intra-day action. Always take the ADR into account when placing hard stops on volatile stocks. :)
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