http://www.traderinterviews.com/idealab/category/view/Stocks The latest ideas and comments in the Stocks category Tue, 06 Mar 2012 12:21:39 -0800 en-us Copyright TNC New Media Inc., 2006 - 2012 http://www.traderinterviews.com/images/traderinterviews_144x19.gif http://www.traderinterviews.com/idealab 144 16 http://www.traderinterviews.com/idealab/idea/view/the-3-golden-trading-rules#c145 http://www.traderinterviews.com/idealab/idea/view/the-3-golden-trading-rules#c145 Tue, 06 Mar 2012 12:21:39 -0800 http://www.traderinterviews.com/idealab/idea/view/when-to-use-oscillators#c144 http://www.traderinterviews.com/idealab/idea/view/when-to-use-oscillators#c144 Wed, 15 Feb 2012 17:57:54 -0800 http://www.traderinterviews.com/idealab/idea/view/when-to-use-oscillators#c143 http://www.traderinterviews.com/idealab/idea/view/when-to-use-oscillators#c143 Tue, 25 May 2010 17:22:06 -0700 http://www.traderinterviews.com/idealab/idea/view/when-to-use-oscillators
This idea comes from many years of live trading (real money not demo's etc) and sticking to figuring out when the typical (rebased/indexed) oscillators like the MACD and Stochastic.

I don't believe in just entering on a under 20 over 80 type idea but rather when the, for example, Stochastic is under 20 and something else happens - candle pattern, on Fib Retracement, at Support/Resistence etc

*** I use an idea here call market form - this another idea I used which is based one Dow Theory of Higher Highs and Lower Lows for deciding the trend direction and when the market is ranging. ***

When to use
1. The market is ranging with form - long and short trades work with high probability
Here the market is in a range with good form. The Oscillator (Stochastic) in this case works well. For shorts and longs...



2.  The market is ranging without form - Oscillator (stochastic) doesn't work well. A lot flatter and not that many profitable trades, more false signals...



3. The market is trending with form - here ony look to take trades in the dirction of the trade. The Oscillator is good for entry only and not exits


4. The market is trending without form - There is no signal in the trend direction and it will give sgnals against the tre but has poor performance.


I hope this is helpful and stirs up some thinking around the different movements of the market and Oscillators - I have shared 4 of them (2 types each with and without good form). I have foun at least 8...

Thanks!
Brad

]]> http://www.traderinterviews.com/idealab/idea/view/when-to-use-oscillators Tue, 25 May 2010 15:07:14 -0700 http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c142
sry]]> http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c142 Tue, 06 Apr 2010 14:50:30 -0700 http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c141
I usually scale out, and have found that except for some longer term position traders, the majority of winning traders also scale out. Every trend has a finite lifespan. If you took all the trends of the day and cut them out and laid them flat atop each other in a chart you would immediately see that they all have something in common. They all exist at the start of the trade, and cease to exist somewhere along the journey to the right of the chart. Inasmuch as you don't know which trend you are riding, the safest time for your money to be in a trade is at entry. A given amount of money earns you just as much profit at entry as it does at the end of a trade, so why add money as the likelihood of a trend reaching its conclusion increases?

You have three alternatives, listed here in order of aggressiveness: scale out; all in/all out; or scale in. New traders should scale in and use two stages. This keeps things simple and has the added benefit of making it easier for them to maintain discipline in the trade. More importantly, it standardizes all their trades so meaningful comparisons can be made in terms of figuring out which set ups are working and when. This review is critical to making it as a trader and is worth sacrificing any incremental potential profit from switching between exits strategies before one has even developed the expertise to decide when to do so. Exit your trades in a willy nilly fashion, and you can throw your journal out the window because the trades are not comparable. You'll never get anywhere by flailing around. Standardization and incremental progress is the key.

As a trader builds up a history of trades, and has fine tuned their line of set ups, he can then sacrifice some of his data by devoting some trades to slowly expanding his repertoire of exits. Again, this must be done in stages, slowly adding different exits and analyzing results. One can stage out in two stages, then try three. The trader may add the ability to cancel the staging out completely and stay all-in throughout the trade. The final and most aggressive technique is to stage in, adding to the trade as the trend progresses. I'm not saying scaling in and ruining your cost basis is always wrong, but it should be reserved for only the most promising of events. If you are in a trade that you are sure you will remember in a year, then maybe it's time to assume this kind of risk, but these events will be rare.

The approach I am describing is an incremental process, very much like the one a trader assumes when he starts out trading one contract and slowly adds another and another until he reaches the point of discomfort. I won't repeat the words of Rangerdoc, who correctly observed that you have to match the process used for exits to the types of trends you are likely to encounter in your particular market. However, you have to learn how to use these methods, and develop the expertise to select the proper method at the proper time. Trying to do so when you are just starting out will retard a trader's development because his results will be all over the map.

Once a trader has these tools under his belt, the proper exit strategy depends on the market. You wouldn't use a moving average in a choppy market would you? Similarly, if I'm long oil and Iran invades its neighbors, you can bet I am going to scale in. Yes, it would be nice if one indicators worked all the time and one money management technique was superior, but trading doesn't work that way. Nine times out of ten scaling out is the way to go, but once you have the skills and the discipline, adapting to clear market conditions, not imagined or hope for conditions, can be much more profitable.]]> http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c141 Tue, 06 Apr 2010 14:47:53 -0700 http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c140 http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c140 Mon, 15 Feb 2010 14:48:35 -0800 http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c139 http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c139 Mon, 15 Feb 2010 14:35:49 -0800 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c138
http://investorandtrader.blogspot.com/

Not a lot in the way of "signals", but I'm finding that those who 'offer signals' - usually are newbies themselves]]> http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c138 Sun, 27 Sep 2009 10:33:14 -0700 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c136
There is commentary about the true struggle a trader goes through. No silly indicators or fluff and no hindsight analysis.

http://brianhoffmantradinglog.blogspot.com/]]> http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c136 Wed, 02 Sep 2009 00:23:26 -0700 http://www.traderinterviews.com/idealab/idea/view/the-mental-edge-part-1-focus-on-the-trade-not-the-money#c134 It wasn't until I decided that I needed a "bread and butter" setup that I found some peace.]]> http://www.traderinterviews.com/idealab/idea/view/the-mental-edge-part-1-focus-on-the-trade-not-the-money#c134 Sat, 29 Aug 2009 15:06:13 -0700 http://www.traderinterviews.com/idealab/idea/view/trading-to-survive#c132 http://www.traderinterviews.com/idealab/idea/view/trading-to-survive#c132 Sun, 23 Aug 2009 01:42:01 -0700 http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c131
If you're looking for something mechanical, there are several indicators that work great for stops. SAR is a good one as it tightens up your stop the longer your trade runs. Trailing stops using multiples of ATR is a very popular method. Fibo levels or pivots are powerful exit targets. I will usually exit all or part of a position when price stalls at a trendline or S&R;.

For something discretionary, You'll just have to use the same methods you use for entering. One thing I've used is to ask myself, "Would I enter a trade in the opposite direction?". If yes, I exit my existing position. Scaling out is an excellent way to relieve some of the stress you are experiencing. Most traders I know of who are trading any real volume, scale in and out of their positions. Unless there is a strong reversal signal, it can be wise to let a small portion of your positions run after moving your stop loss to break even or even locking in a profit. On a strong tend day, I've made more profit from that small portion I let run rather than all my scalps combined.]]> http://www.traderinterviews.com/idealab/idea/view/when-to-take-a-profit-early#c131 Sun, 23 Aug 2009 01:27:07 -0700 http://www.traderinterviews.com/idealab/idea/view/should-i-ask-interviewees-how-much-money-they-make#c129 http://www.traderinterviews.com/idealab/idea/view/should-i-ask-interviewees-how-much-money-they-make#c129 Sun, 14 Jun 2009 14:25:47 -0700 http://www.traderinterviews.com/idealab/idea/view/has-the-forex-market-ever-heard-of-supply-and-demand#c128 1. So which 'side' of supply & Demand do you use in stocks? and how? Can you draw a 'diagram' of how it all works? or are you just using the 'chart based' lines? Do you know what a supply 'chain' looks like, hence, how to anticipate/lead supply and demand?
2. If you KNOW supply chain and how it affects stock trading, (I mean REALLY, not just the canned lines they give you) THEN you will find it in Forex. It is called the world economic conditions and happenings. They feed the 'world' currency market the same way that 'events' and conditions feed a company's supply chain.
3. If you really want to get that edge, which is how the 'big and consistent winners' sustain success, we can help you learn it. If you just want a new 'line' or indicator to see, we'll have to suggest waste your money somewhere else.
4. So, when you traded stocks: were you overall successful and sustainable for over 18 months?
5. So, the respondents, same question for them.

Any and all of the markets, throughout the world, operate on supply and demand; supply chain. When you really want to get with and win with the big guys, that's where your studies go...not to the technical 'indicators. Without knowing where things are headed and why, you'll never know which indicator to pick. There is rhyme and reason, but you have to really study and work to find it.

Sorry to butt in, but have much knowledge, background, success and effort into helping y'all find solutions, not scams.
Shar]]> http://www.traderinterviews.com/idealab/idea/view/has-the-forex-market-ever-heard-of-supply-and-demand#c128 Tue, 26 May 2009 23:55:40 -0700 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c127 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c127 Sun, 24 May 2009 12:03:33 -0700 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c126
Market Commentary: http://www.blog.fallondpicks.com
Markets covering Ireland/UK/US: http://www.zignalsblog.blogspot.com

Thanks,
Declan
**shameless plug**]]> http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c126 Fri, 22 May 2009 12:53:10 -0700 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c125
Here is another blog you might want to have a look at..

The Daily Trading Report

We focus on identifying the themes & trends in the bonds, currencies, equities and commodity markets.]]> http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c125 Fri, 22 May 2009 02:28:55 -0700 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c124


http://www.davidbuffalo.com/

and

http://Misstrade.wordpress.com



But then again, that would have been 12.
]]> http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading#c124 Thu, 21 May 2009 22:30:33 -0700 http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading
But for now, here are a few traders whom I read each day. These are not in any particular order (even though they are numbered). Like everything else, what you're looking for is the "one takeaway" you use in your own trading.  And these traders have some great thoughts in nearly every post that can help you make better trading decisions.

Have I missed any?  Be sure to post your favorite blogs in the comments below.

1) Don Miller's Trading Journal (http://donmillerjournal.blogspot.com/)
Reading Don's daily posts is like watching, in real-time, the evolution of a highly successful trader.  Don not only talks about his great trades, but also discusses the days he feels he did badly and why he thinks he wasn't on top of his game.  Part philosopher and part CEO of his own trading account, Don's frank talk about his ability to make his living in the markets is a daily treat.

2) Trade the Picture (http://www.tradethepicture.com)
Mr. Volatility, as he calls himself, is a mix of broad market commentary and more short-term trading information. A recent insightful post on the VIX caught my attention and I've been reading through the archives this past week.

3) Corey Rosenbloom's Afraid to Trade (http://blog.afraidtotrade.com/)
Talk about nuts and bolts!  Each day Corey discusses his thoughts on the markets and shows details on the charts he is watching.  He also does a great job of combining big picture charts and short-term charts to show readers why he thinks the markets are headed in a certain direction.  Don't let his "youthful" appearance fool you! Great stuff.

4) Brett Steenbarger's TraderFeed (http://traderfeed.blogspot.com/)
Brett's primary emphasis is on trader psychology, but his blog offers so much more. Brett offers real-world examples of trading strategies and chart-reading tips that anyone can use to get a better feel for market momentum and price action.

5) Moaxian (http://maoxian.com/)
I feel like I'm walking into a terrific Chinese restaurant when I enter this blog - you know you're about to have a great experience even if you don't always understand the language.  The consistency and quality of the Moaxian posts are fantastic and offer tremendous detail on trading opportunities.  Sometimes I find myself having to read a post again to make sure I understand the lesson, but it's always worth the extra time.

6) Alan Farley's Hard Right Edge (http://hardrightedge.com/daily/)
I've known Alan for many years and he is the real deal. Back when I was just getting started in trading in 1997, Alan came and spoke to my small trading group and had everyone riveted for several hours.  His book is one of the best out there for traders and his daily market postings are chock full of trading ideas for the day.

7) Trader Mike (http://www.tradermike.net)
Trader Mike has alerted me to a few trades in the past month that if I hadn't been reading his stuff would have passed me right by.  His archives go back to 2003, making him one of the veterans of trading blogs.  His market recaps are great because, unlike some sites that just tell you what happened, Mike goes into the charts and offers an explanation of why it happened and what may happen next.

8) Dave Mabe's StockTickr (http://blog.stocktickr.com/)
While Dave doesn't post that often (c'mon Dave we want more!), Dave's posts are insightful and relevant for any short-term trader.  He also features text interviews with other traders who discuss their trading styles.  The great thing about Dave's blog is that he links to a lot of other resources in his posts, alerting you to other websites and services you may not know exist.

9) Traderam (http://traderam.blogspot.com/)
I'm not sure if this is Trader AM or Trade Ram.  What I do know is that this trader features some great candlestick charts and shows you exactly what he's looking at on a daily basis.  If you're looking to improve your candlestick chart reading skills, follow along and see how this trader reads them and profits.

10) Wall St. Warrior (http://traderjamie.blogspot.com/)
Jamie and Jim, the two trader/contributors to this blog, do an excellent job of highlighting trading opportunities from a technical perspective. Trendlines seem to be their main focus, and a mix of overall market charts with technical reads on individual stocks and ETFs. A terrific place to find trading ideas if you're coming up blank.

I'm sure I missed some great ones - post your recommendations in the comments!]]> http://www.traderinterviews.com/idealab/idea/view/10-trading-blogs-every-trader-should-be-reading Thu, 21 May 2009 19:43:19 -0700