Comments on: Rackable Systems, Inc. (Nasdaq: RACK) Trade Monday http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/ Futures Trading, Custom Programming, and Commentary Fri, 05 Mar 2010 06:12:03 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Richard http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/comment-page-1/#comment-276 Richard Mon, 18 Sep 2006 23:42:10 +0000 http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/#comment-276 Hey Glenn, I normally use market orders to play breakouts because I expect a big move, with everyone piling on at the same time. So, this puts me ahead of the limit orders, and I know there is a good chance I can make a profit even off a bid fill. Like today, for instance. When I play a slower setup, like a normal dummy-style narrow bar, I tend to favor a limit order to protect myself. Yeah, in the $30 price range I am usually trading thousands of shares. Hey Glenn, I normally use market orders to play breakouts because I expect a big move, with everyone piling on at the same time. So, this puts me ahead of the limit orders, and I know there is a good chance I can make a profit even off a bid fill. Like today, for instance.

When I play a slower setup, like a normal dummy-style narrow bar, I tend to favor a limit order to protect myself.

Yeah, in the $30 price range I am usually trading thousands of shares.

]]> By: Glenn http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/comment-page-1/#comment-275 Glenn Mon, 18 Sep 2006 23:33:27 +0000 http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/#comment-275 Hi Richard, may I ask why you are using market orders to enter and exit. Also are you trading thousands of shares? Thanks!! Hi Richard, may I ask why you are using market orders to enter and exit. Also are you trading thousands of shares?
Thanks!!

]]> By: uglychart.com » Blog Archive » Today’s notes http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/comment-page-1/#comment-274 uglychart.com » Blog Archive » Today’s notes Mon, 18 Sep 2006 22:12:03 +0000 http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/#comment-274 [...] I have been thinking about my rules. Rules are important to follow, but if trading were just rules anyone (or any computer) could do it. Similarly, rules are important in chess, but if you only follow rules you will not be any good (unless you can compute 200 million positions per second). Intuition is our edge. The way we can feel the market is what really makes us good at trading. Basically, this inuition is just the human brain’s amazing pattern recognition capabilities. You can’t ignore your trading intuition - you will only give away your advantage. The computers can’t feel the market like we can - yet. A rule I have is to let my winners run. It’s usually a good rule. But today it wouldn’t have worked with the trades I made. At around 1pm today I closed out everything for a profit because I didn’t like the way things felt. It worked. Richard also made a similar profitable trade based on his intuition. But this doesn’t mean that rules are unimportant. They are very, very important in trading. After thinking about this a lot lately, I believe that rules (at least for me) are especially important when dealing with risk management. I don’t ever want to break a rule that has to do with risk management (e.g. pulling a stop, overtrading…). I need these rules as a safety net and I won’t even let my intuition interfere. Other rules (e.g. letting your winners run) may not be as important if your inuition is telling you something different. What I’m trying to say is that you need rules but you can’t always let them get in the way of your intuition. You need rules to keep the emotional part of your brain from taking control. Trading with inuition is okay as long as you are not trading with emotion. Also worth noting today is the large chunk of QQQQ that passed by at 2:30: Another thing I’d like to mention is that when I post about my frustration or feelings about trading (e.g the AMR incident), I am only posting about my frustration or feelings with trading, and not with life in general. When I say (half-sarcastically) that God is against me, I only mean to say that he has the other side of my trade, and not that he has given me a bad lot in life. I am well aware of the extreme luck I have been given in my life - I am a card-carrying member of the lucky sperm club. I try to think that the troubles I have are due to my own mistakes, while the good things come from luck. [...] [...] I have been thinking about my rules. Rules are important to follow, but if trading were just rules anyone (or any computer) could do it. Similarly, rules are important in chess, but if you only follow rules you will not be any good (unless you can compute 200 million positions per second). Intuition is our edge. The way we can feel the market is what really makes us good at trading. Basically, this inuition is just the human brain’s amazing pattern recognition capabilities. You can’t ignore your trading intuition – you will only give away your advantage. The computers can’t feel the market like we can – yet. A rule I have is to let my winners run. It’s usually a good rule. But today it wouldn’t have worked with the trades I made. At around 1pm today I closed out everything for a profit because I didn’t like the way things felt. It worked. Richard also made a similar profitable trade based on his intuition. But this doesn’t mean that rules are unimportant. They are very, very important in trading. After thinking about this a lot lately, I believe that rules (at least for me) are especially important when dealing with risk management. I don’t ever want to break a rule that has to do with risk management (e.g. pulling a stop, overtrading…). I need these rules as a safety net and I won’t even let my intuition interfere. Other rules (e.g. letting your winners run) may not be as important if your inuition is telling you something different. What I’m trying to say is that you need rules but you can’t always let them get in the way of your intuition. You need rules to keep the emotional part of your brain from taking control. Trading with inuition is okay as long as you are not trading with emotion. Also worth noting today is the large chunk of QQQQ that passed by at 2:30: Another thing I’d like to mention is that when I post about my frustration or feelings about trading (e.g the AMR incident), I am only posting about my frustration or feelings with trading, and not with life in general. When I say (half-sarcastically) that God is against me, I only mean to say that he has the other side of my trade, and not that he has given me a bad lot in life. I am well aware of the extreme luck I have been given in my life – I am a card-carrying member of the lucky sperm club. I try to think that the troubles I have are due to my own mistakes, while the good things come from luck. [...]

]]> By: Richard http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/comment-page-1/#comment-273 Richard Mon, 18 Sep 2006 21:10:30 +0000 http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/#comment-273 @Tyro: yeah, luckily, this one telegraphed itself quite well with the two preceding candles. I'm still kicking myself for not shorting into it. @Tyro: yeah, luckily, this one telegraphed itself quite well with the two preceding candles. I’m still kicking myself for not shorting into it.

]]> By: Tyro http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/comment-page-1/#comment-272 Tyro Mon, 18 Sep 2006 21:04:57 +0000 http://www.movethemarkets.com/blog/2006/09/18/rackable-systems-inc-nasdaq-rack-trade-monday/#comment-272 Wow, look at that death candle! I got caught at the bottom of one of those today and they can just destroy an otherwise good day. I'm glad you and others share these things so that newbies like me can catch a glimpse into the minds of better traders. Gives me hope for the future! :) Wow, look at that death candle! I got caught at the bottom of one of those today and they can just destroy an otherwise good day. I’m glad you and others share these things so that newbies like me can catch a glimpse into the minds of better traders. Gives me hope for the future! :)

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