Friday, December 12, 2008


sold HES + $ 700 and off to go skiing
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5 comments:

joshua said...

wow! just came across your blog from the comment section of stewie's blog. great information. i appreciate how you show the trade developing from the buy to the sell. i don't know where you find the time to post the charts during the day, but somehow you make it happen, which is great for the reader. i do have one question, how come most of the charts have 2 red and 2 green lines on them when you initially establish a position? i would think that there would only be one color line the first time a trade is taken that particular day.

11:44 p.m.
Unknown said...

Fear and Greed Trader,

Thank you for posting the charts and the commentary. It has helped my trading tremendously.

Had a question about how you time the entry and exit of your trades. Most often you exit with a small loss. Is this because you have a small initial position size and add size once trend confirmed? Or do you enter the trade on break of doji low/hammer high etc.

This would really help in timing my trades, since i am always getting chopped up during trend changes.

Thanks again for your charts and posting.

7:31 a.m.
joshua said...

jaya, are you able to answer my above question about reading the charts?

thanks

10:57 a.m.
Scott said...

Joshua, I have two sets of lines on the charts because when I'm in a trade and decide to end it, I usually take the trade the other way and I use the 2nd set of line to mark my exit point. For example if I'm long and I see the trend reversing, I sell the long trade and go short. I will then mark my stop point(the price that my short sell decision will be proven wrong) with a line just above where the long sell point was. If I add size to my position( short sell more shares) then I also mark that price level. Keeping a 2nd set of lines already on the screen means I can sabe time by just grabing and moving them instead of having to create them.
Jaya,
I always buy at least 1000 shares and these does with stuff so cheap some times 2000 although it depends of th eprice of the individual stock. Back a few months ago when the market action was in a frenzy, I was sometimes stepping into trades with everything I had because it was not so choppy and the trend was more easy to follow. I use dojis alot and factor in the strength or weakness of the trend/price action. Momentum swings are sometimes easy to spot as for example a stock is in an uptrend and I see the candles getting shorter, volume is dropping, overall markets are also slowing, then I know the probability of a reversal coming very soon is high. I can sense the spot that I should take the trade by taking all this in. If I'm wrong, I take my loss and get back on the original uptrend. If it gets choppy with some up, down, up down action I take some little gainers and losers before I can latch onto the right side of the trade. I don't care which way it goes. Everything I trade is very liquid so I can get in and out fast.
Gald to hear that what I post is helping you guys out. Remember spend more time practicing emotional control and brain power than looking at charts for 2 hours every night and predicting where things will go.

6:30 p.m.
joshua said...

thanks for the reply. i can see now that i just need to look at the last bar printed and the lines you drew around that price level. i shouldn't pay attention to the lines at the top or bottom that have nothing to do with where price is at that moment. it is getting much clearer now the more i look at your charts. i'm sure it is a pain in the ass putting these up in real time, but they are much appreciated. maybe different colors for long, short, sell,cover,stop would make it easier for newbies like myself to read. i don't know how hard or annoying that would be. but, honestly, after going over the charts a few more times after your explanation, it is easy to see where you short, where your stop is at, where you add to the position, and then cover later on. i think i may have changed my mind. probably all the different colors would just make the chart look confusing. thanks again!

9:43 p.m.

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