StockFetcher Forums · General Discussion · Day Trading 101: Tips, Tricks, and Techniques<< 1 2 3 4 5 >>Post Follow-up
luc1grunt
622 posts
msg #62436
Ignore luc1grunt
modified
5/9/2008 4:36:58 PM

I posted this on another forum a while back. Easier to copy and paste than go throughthe efforts of today's trades. Same system, a few or several trade setups each day depending on the markets (obviously).

Niko, I've got the original screen shot as a png just figuring out a hosting service. Can pngs be loaed directly into this forum?

Original post......

Luc1Grunt

Posts: 2,146
AAPL daytrade in Action 8 Jan 08

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Step by step of a high probability trade setup with high r/r. For those of you looking to daytrade (intra-day scalps)...follow along.

This is AAPL 5 minute for 8 Jan 08 (today). Stock close 7 Jan at 177.64 (not plotted on chart)

Gapped up to open at 180.14.

A few scalps on the 1 minute chart, but a cautious day for the markets as indecision reigns.

AAPL did not present many early opportunities (for my style and trade parameters).

Stock began rising around noon, but volume was lowering on the price rise. Still a few scalps on the 1 minute. As the markets began turning south around 1420, AAPL began sliding. Still no high probability setup. Good slide, but tricky trade.

As it began to approach the LOD (178.00) , begin looking at the setup on the 1 (there was a couple trades at 180.90 and another at 179.50 on the 1)..... It will either bounce from the LOD or break it. Note the increasing volume on the way down. Strong signal it would break but still a 50/50 risk.

Confirmation: (S&P stumbling on the 5 and 1 as well).

Note the break of 178 and then it moved backed up through 178. Typical action and a great fake out for unfortunate longs. It dipped and then closed below 178....first short entry of a small amount at 177.88.

Next bar screamed downward under heavy selling....2 more short buy-ins on the way down at 177 and 176.50 (market orders filled) and position is now max'd.

Buyers came in after the bottom at around 173. Note the placement of the fib line 0% from the previous swing high. As the buyers drove the price up, all positions exited between 173.60 and 173.90. The action was forecasted by the massive influx of buyers....you could feel the change.

All positions now closed. Next trade setup is the fib bounce.

Note the 38.2. It could not hold it and buying volume on the 5 slowed.

As it opened the next bar at the 23.6 it spiked a bit on the 1 and blew right back down.

Another larger short entry at 175. Larger because the markets were all selling, AAPL volume began increasing and the fib line could not hold.

added final short to max position as it broke the fib base line (173).

Covered all positions 171.80 and 172 (market orders).

Same price action occurs daily on many stocks. This (AAPL) is one I am very comfortable and familiar with.

The only indicators are price bars and volume. Plot a quick fib to get your bearings, but use only as a confirmation and not a "signal".

Charts actively running are 1 minute, 5 minute, 15 minute, and S&P 5 minute. T&S is running and only occasionally level II (too distracting).

Sorry about the chart quality....it's the only chart platform I have that will fit the size limiations of the forum.

As I've posted here and on other forums, if you intend to intra-day trade, pick a high volume stock (I prefer NASDAQ) watch it day in and out and see how it reacts to support and resistance levels. Sit on your hands (literally) if needed and watch. Watch the action and correlation of the S&P or NAZ Comp. Watch a few timeframes.

Hope that helps a fella. Looks and feels easy, but the education can be expensive. Discipline and mental attitude are partners in the quest.

Happy Trading.

Niko, I've got the original screen shot as a png just figuring out a hosting service. Can pngs be loaed directly into this forum?



luc1grunt
622 posts
msg #62437
Ignore luc1grunt
modified
5/9/2008 4:40:00 PM

deleted...got the pic to post

luc1grunt
622 posts
msg #62438
Ignore luc1grunt
modified
5/9/2008 4:59:14 PM

deleted

nikoschopen
2,824 posts
msg #62441
Ignore nikoschopen
5/9/2008 6:18:15 PM

Grunt, I find imageshack.us to be the best image server out there and they support just about all formats including PNG. Once you upload the image, they'll spit out hotlinks like the one below that you can directly paste here.




luc1grunt
622 posts
msg #62442
Ignore luc1grunt
5/9/2008 6:32:02 PM

Hey!! That's what I used from your OP on the subject. Pretty nifty Niko. :)

slotmarket
59 posts
msg #62446
Ignore slotmarket
5/9/2008 7:35:01 PM

grunt,
That was a lot of work you put into the blow by blow of the AAPL trade. Just want you to know your efforts are appreciated.

TheRumpledOne
6,358 posts
msg #62450
Ignore TheRumpledOne
5/9/2008 10:30:22 PM

nikoschopen
- Ignore nikoschopen 5/9/2008 11:32:40 AM



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Quote from TheRumpledOne:

Some stocks, like aapl and rimm, are volatile and range over a dollar a day on average. But you don't know that unless you use a filter to display the statistics. The filter isn't used to pick the stocks. The filter is used to report the stats.
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Although I have my reservations, I'll give you the benefit of the doubt. In that case, I would ask not WHAT but HOW (sounds familiar, eh?) you would trade the stats. Give us as much specific examples as possible. (eg. What is "Wait for green"?) As the thread header indicates, I think it would be in the best interest of others should you elaborate on specific techniques, if no other than ordinary tips or tricks. Thanks.
========================================================

It is simple... buy aapl at the open, at the open price and put your sell in for a dime or more profit.

Or if you prefer, short aapl at the open and put your cover in for a dime or more. Stats are on your side.

One trade.. that's all you need. You can do the same with rimm or any of the other "cows" I have identified..



nikoschopen
2,824 posts
msg #62453
Ignore nikoschopen
5/10/2008 2:12:02 AM

I think it's worth noting that just as there are many types of investors (eg. growth, value, IRA, happy, sad, crazy, and whatnot) not all daytraders are created equal. I happen to be a member of the "trendy" camp, namely, I play intraday trends. As such, my trading techniques may be vastly different from those who proudly wear their badge of honor from the MoMo (momentum) or the scalp nation.



luc1grunt
622 posts
msg #62454
Ignore luc1grunt
5/10/2008 8:30:25 AM

Great post Niko....I'm doing some study of channels for some swings on the hourly / daily.....this helps.

nikoschopen
2,824 posts
msg #62462
Ignore nikoschopen
5/10/2008 3:16:51 PM

Despite all the information written about it, channel is perhaps the most neglected tool and yet it's singularly the most useful tool in detecting trends. Had I fully understood its implication at the outset of my trading career, I might have had started an easier life. lol

StockFetcher Forums · General Discussion · Day Trading 101: Tips, Tricks, and Techniques<< 1 2 3 4 5 >>Post Follow-up

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