As a kind-of trial run, I made this video on Friday… The hard part about these is, you don’t know when or if the stock will do something interesting. So, you just drone on and on, while you wait. It’s worse than droning, because you’re also distracted because you are trying to watch the stock at the same time. Maybe I’ll find a way to get better at this, but I am not going to slow down my actual trading. That would be stupid…
Anyway, I’ve cut out the dead air, and tried to piece together something intelligible, and you can at least see how I set up my screen when I’m watching for a breakout.
At the end, when the breakout happens, note how the bidders quickly eat through 40k shares of ask size, via lots of fast prints. When I saw the ask size get smaller than the bid size, as trades continued to fly by at the ask, that’s when I said “NOW” I would pull the trigger were this not the final 10 minutes of the trading day. With any luck, I would have gotten some of the last available shares at .05, or maybe some of the first available at .06.
April 24th, 2007 at 11:49 am
[...] The charts are pretty uninteresting. In fact, I don’t really look at the chart when I’m scalping… I mainly look at my little L1 quote box (which I showed on my “how I stalk a breakout” video). [...]