Thursday, January 22, 2009


5 minutes to go till end of day so time to take the $. Pat yourself on the back if you traded your plan like a machine today. 
Review your trades , work on the emotional control if you didn't.



SRS
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8 comments:

Groggy said...

I am new to your site and must say its awesome. I loved your archive article and especially like your phrase "momentum analysis."

My question for you is do you use candlestick analysis alone to determine momo and if so, did you learn it from Nison's books?

All my trades this month have ended awful; I can't seem to grab the trend correctly.

Thanks again for your blog, I'm trying to educate my way out of this slump.

2:18 p.m.
Blue said...

Scott, you have to be a machine to trade the way you do. I want your psychic powers man. I'm still too much of a tic whore to trade size on the 15min charts like you do. I'm OCD. Maybe I should stick with the 1min. and be happy with that.

2:53 p.m.
Groggy said...

I'm starting to think the 1min chart is my problem, but I'm afraid to trade a slower chart.

Maybe I'm ocd too.

2:58 p.m.
ez said...

i drop way 90% of my indicators and follow this SIMPLE price action .. ppl do that on demo account yuo gonna get the feeling for it,,, i get today 2:25 skf till2;59 make 8 points on skf why....? i see the spx 15 min. chart and 5 min and follow fng thanks [i just do trend lines also on 5 min. to keep me in trend]

3:45 p.m.
Unknown said...

scott: you might find this corelation calculator handy: it will find stocks or etfs that better corelate to the spy and qqqq.

http://ramtajogi.in/co-relation-calculator/

8:48 p.m.
Scott said...

Thanks guys.Glad that you're getting something out of it.
Groggy- The candles tell only part of the tale. The momo comes when all the forces align and it's ez to see and feel the trend. If the stock is going and the markets are going, don't wait for any other confirmation. All you have to do is pull the trigger.
I've never read Nisons book but read some others that explained things.
Blue- I think that using 1 minute charts gets you too close to the action. That's why you get faked out. Better to use 5 minutes charts that stand you back a bit. It's the old "can't see the forest for the trees" type of thing. You're too close to the markets makers that will beat you with their losers stick. I use only 5 min and sometimes 15 minute(dojis for example) for all my decisions.
EZ- Yes you're getting it now. Drop the 0ther 10% of the behind the times indicators and just trade the ebb and flow of the price action. Feel the trends as they change. Trade the probabilities.
There is no limit to what you can do.
Klynnskates- thanks for the info. The etfs are the best trading vehicles out there.

10:28 p.m.
Groggy said...

Scott,

Thanks for answering. I think I'll focus more on momo shifts and watch for dojis as you suggested.

I guess I'm getting "analysis paralysis." While I'm waiting for a confirmation the entry passes.
Then I force in at a bad price and panic out when it turns.

Please, keep writing this awesome blog.

8:48 a.m.
Blue said...

Scott, I actually only look at the 1min during big momentum to verify price is holding the trend or not. I only exit positions based on my 5min charts. I always have 5 and 15min charts up like you. I do put in stops way too fast and have a hard time stomaching the price fluctuations in these ETF's. I don't like any drawdown because I panic thinking I got it wrong and will be staring at a quick 2,000 loss. I'm just not confident enough to be trading these ETF's even though I have the balls to try. The price swings scare me out of my position all the time. I do love how quick they move which is the attraction in the first place. Big bet, small time frame, quick money.

4:09 p.m.

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