Guest Post: Friday’s Trades and Results
Posted on September 14th, 2007
Written by Prospectus
Posted in: N/A (old archives)
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I finished the week out +2.69R, though I’m still down -10.15R for the month, up from a max drawdown of -12.85R. Turned a corner, anyway! Charts of my trades today are farther down the page.
I tried a system inspired by 00NR7 for a few days, but I don’t think it fits me. It’s a terrific system, but just not for me. I won’t stick to it, since I want action more than the system dictates. That’s my personality, and I hate it! It’s so irrational, and a slow, methodical, steady method seems to make so much more rational sense–That’s how I think, and I wish that’s how I felt! But on days where there’s no setups, I go batty. So I want a system where there are trades every day, if possible.
I used to try some of Muddy’s trades a while back, before I was a prop trader. The thing is, I would pick the one that turned to stop me out, and I’d be done for the day. Now, I can shoot at as many of these as I want to. They are often very small cap, low float, sometimes OTC-BB stocks. It’s pure momentum–see it popping and buy it. Why? Who cares! That’s the mindset. Muddy has a chatroom where people are calling out stuff that’s moving. If Sloth even read a post from this chatroom his head would explode. I also watch the “Market Movers” list from Scottrader. Some of these can run 20% or more in a single trade. You have to be quick and have a plan, kind of like StreetSmack’s plays, only instead of watching a move, waiting to fade it, you’re trying to ride it while it’s still in progress. I guess the holy grail would be to ride it up and short it down, but I’ll leave that for another time. :)
You might think “why do you want to trade this way?” Well, it turns out that there is a similarity between this method and a method like trading gaps ala Trader-X:
They both have auto-generating watchlists–either tickers from a gap scanner or stocks screaming to new highs. They both say “HERE I AM, TRADE ME!” No fumbling through the markets trying to find a setup. There is even less of that with Muddy’s method, since when a setup presents itself, it is time for action! With Trader-X, you have to continually flip through your gappers, looking for the setup. They both are trying to take advantage of unusually high volume and interest in stocks. With X, you get in on a pause, with Muddy you dive in as close as you can to the beginning. When none of the gappers are moving, I float from chart to chart, randomly trying to fit setups to stocks, and lose money. I like narcissistic trades that get in your face. If I had Trade Ideas, I’d like to perfect StreetSmack’s method, since that’s another type like this. Anyway, I digress.
Here’s the charts from my trades today. My technique was a bit rusty, but I still came out ahead today. I need to fine tune better entry and stop strategies, but I’m happy with how I did today with my current experience level. On these charts, Orange is my entry, Red a stop, Light Blue a partial, and Dark Blue my final exit (if not stopped out):
I missed being on Wallstreak, though I did pop in a time or two. :(
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.