SFMc01
358 posts
msg #56316
- Ignore SFMc01 |
11/2/2007 12:02:05 PM
I need advice. Based on Milk-The-Cows (MTC) I bought ISRG this morning at 9:30 am when it opened at $323.52. This was below its previous days high and within 1% of the previous days close during regular hours. I felt fairly optimistic because this is a volatile stock and all signs pointed to an up market day, at least at opening time. Within seconds the stock went to $325.88 (+.7 of 1%) and then just as quickly settled down again. The stock dropped about 1% in the next 15 minutes, a not unusual fluctuation with this stock.
Within 2 to 3 minutes between 9:52 am and 9:55 am the stock dropped from $318.53 to $306.25. I was scrambling to determine what I should do and to find any pertinent news and found nothing. As of noon, the stock hovers around $310, about a 4% drop from the purchase price. I did not have a stop-loss placed because I was actively watching my purchases and other possibilities. I'm holding on to it now.
Should I just chalk it up to thr perils of the trading business, or, are there any suggestions as to what I should have done differently?
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msummer2007
129 posts
msg #56318
- Ignore msummer2007 |
11/2/2007 12:46:15 PM
When you entered the trade you should have predetermined profit and loss. I have made this mistake many many times myself. This is how a quick day trade turns into something a little different. In my experiences I have decided to sell it immediately when my predetermined stop loss is hit. Lick my wounds and get over it. There are too many trades waiting for you to get hung up on this trade. Best of luck!!!
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karennma
8,057 posts
msg #56319
- Ignore karennma |
11/2/2007 12:48:23 PM
Lucky you!
It came right back up.
:>)
BTW ... FWIW ...
I never buy at the open. As per ..
The 20 Golden Rules for Traders
#13 - "Avoid the open. They see YOU coming."
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SFMc01
358 posts
msg #56320
- Ignore SFMc01 |
11/2/2007 12:59:29 PM
msummer2007: Thanks ... I did have a predetermined profit and stop loss. $2.50 profit and 1% stop loss. But, it never reached the profit stop and blew right past the stop loss point, while I was watching. When the stock hit about $306, I decided I liked it as a buy, and, then just held on to it. What would you have done?
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SFMc01
358 posts
msg #56321
- Ignore SFMc01 |
11/2/2007 1:04:11 PM
karennma: Thanks. I buy at the open as soon as I see what the market and this stock is doing, as indicated by the premarket activity. ... just as TRO suggests for this filter. If I had waited until 9:45am, the result would have been the same. Is this just one of the perils of daytrading, or, ...do you only buy after 10am? Or, respectfully, any other suggestions?
Steve
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guru_trader
485 posts
msg #56322
- Ignore guru_trader |
11/2/2007 1:04:49 PM
Stop loss at 1% of your entry price or 1% risk on your trading equity?
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curmudgeon
103 posts
msg #56324
- Ignore curmudgeon |
11/2/2007 1:08:31 PM
Perhaps you might evaluate why you entered the trade at the open? Is it because your "system" gave you the signal? Or because you're following a pattern that worked for somebody else? Are you trading high ATR stocks with daily bars? Do you have a money management method? "Trade your way to financial freedom" is a good place to start. Ralph Vince has some books on MM too.
IMO to stack the odds in your favor as much as possible you need to determine trend and then find low risk entry points. You also need to be in sync with the overall market. Swing entries only come about twice a month.
Finding good entry points is much easier with multiple time frames.
Keep your charts uncluttered and simple. Up is up and down is down. IMO candlesticks, BBands etc. add more noise than they're worth. All you need to see the trend are moving averages.
Of course no matter how you stack the odds sometimes you're just gonna get reamed.
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msummer2007
129 posts
msg #56329
- Ignore msummer2007 |
11/2/2007 1:43:57 PM
I would have bailed as soon as it went through my mental stop loss. The way I look at it, if you are day trading in 1 stock for the day, there will be multiple opportunities to get in and out. So if you lose on your first trade, that doesn't mean that you won't be successful on all subsequent trades. By the end of the day you might have more than made up the original loss. Then it doesn't seem so bad>.
Good Luck
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karennma
8,057 posts
msg #56330
- Ignore karennma |
11/2/2007 2:14:07 PM
Hey Steve:
Curmudgeon brings up a good question .. WHY did you get into the trade in the 1st place? What signal were you using?
Last Thursday nite (10/25) my indicators said ISRG was overbot.
(See discussion section under ISRG - "time to short ISRG").
Yes, that was a week ago, but I'm not daytrading, I'm swingtrading.
So, waiting a week for ISRG to bottom is no big deal.
IMHO and I mean HUMBLE ...
you bought on the right day, just the wrong TIME.
For me personally, I NEVER buy anything @ 9:30 or 9:35am or whatever. It's been my experience that whatever " big event" is going to happen to a stock, occurs or finishes AFTER 9:50 am.
IMHO .. my very humble opinion ... 9:50 to 10:25 am is more important than 9:30-9:35am.
Sometimes, I'm still walking my dog @ 9::30am.
But if I'm not home by 9:50 am ... shame on me!
:>)
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karennma
8,057 posts
msg #56332
- Ignore karennma |
11/2/2007 2:27:58 PM
Here ya' go ...
20 Golden Rules for Traders.
http://www.hardrightedge.com/wheel/tcrules1.htm
#13 - Avoid the Open. They see You coming.
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