I look forward to matching my wits against wall streets home team and their computer programs.
I did the same trade last week or so. When the outlook is the dimmest, taking GS long is like taking free money. I would have thought they would camouflage their intentions better.
Gold stocks are making new highs
GG, RGLS GOLD
GS entry
GS exit
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5 comments:
scott,
if you get a chance, i was wondering if you would have shorted the pop in FCX at 2pm on friday. i started shorting at 2:01 around the 1:50 bar high of .51 thinking that it would retrace back to lows. it kept moving higher, so i shorted a little more. i thought it was the market makers bringing it up, right before they slam it down. the market had gotten me out of my short in the morning of FCX at the 11:25 wick high, just before it dropped $1.50 and i thought the same thing was happening again. looking back, i can see the volume on the 11:25 candle was the lowest of the day while the 2pm candle had the highest volume in the previous 2 hours. and according to your post, i should have been watching GOLD to see that it was breaking highs which would most likely pull FCX higher. any thoughts?
thanks
p.s. i did flip the position on FCX around 2:06 closing the short and going long at 67.22 but i wound up getting jiggled out of the long as well around the whole dollar level. this had to do with my share size, % at risk, and frustration. The good news, I may be able to start trading odd lots with my broker. This will decrease my initial risk which should lead to not getting jiggled out as much. And hopefully, being able to scale in at the proper time.
J- A FCX short at that time would be a valid play, however once it started to go against you you should get out. Never, never, never add to a loser. Only add to a winner.
You were right in going long after you closed the short so you are on the right track. Share size vs. risk tolerance vs. timing your entry is a balancing act. As you gain more experience then trading becomes easier. Sometimes it's also easier to buy stocks that are making new highs(like GOLD in this instance) since they are sometimes less likely to jig around. There is not hard and fast rules though.
Congratulations on your progress!
Thank you.
On Friday, I just took on too much share size at the wrong time and lost more than I am comfortable with. I thought I had discipline not to keep trading after being down at my loss limit for the day but, I guess when things are bad is when you break the rules. I called my broker and now I have self imposed restrictions that will prohibit trading after being down at my loss limit.
Joshua;
Good move - as a trader still struggling with the same issue I understand where you are at. Good luck - it sounds like you are on the correct path.
thanks mojo, i hope so.
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