rrochon
117 posts
msg #27593
- Ignore rrochon |
7/28/2003 3:27:16 PM
Shel,
Are you still using your modification of Muddy's filter, so that you can buy on open instead of waiting until green signal? The one where you rank the stocks by highest volume and lowest MFI?
I have been paper trading it since 6/17 and so far, 9 of them have hit -15% from the cost or the highest close, and only two have sold in the money.
If you have been using this filter and making money, then obviously I am doing something wrong, but I thought I was following your rules on selling (if it closes near -8% from the cost or highest close, then set a sell order at -15%).
Any comment will be appreciated.
Dick
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shelshel
11 posts
msg #27598
- Ignore shelshel |
7/28/2003 9:38:53 PM
Dick,
I'm still using the system and making money but not quite as much as before. I'm selling my winners to continue trading which helps me lock in profits.
I've made a slight modifications to my selling. When I got back from vacation after setting stop losses of 15% I noticed that a few of the stocks went down that far during the day and were sold but they made a nice bounce back to where they were at or above that stop loss for the day. In the following days some ended up higher...OUCH!!! I'm a little more forgiving these days. Instead of setting stop losses I'll see how they ended up at the end of the day and if they were down 15% from where I purchased it I'll consider selling. To be honest I'm still trying to figure out what way is best.
One other factor that I doing is not to buy Foreign companys. They are too unpredictable.
I am also hanging on to some losers in the hopes they come back. Some have some haven't.
Hope this helps
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EWZuber
1,373 posts
msg #27606
- Ignore EWZuber |
7/29/2003 1:53:42 AM
Just a comment about entry points. IMO, this is the most critical part of trading with the exception of selling. I would not recommend relagating this important function to a screen. I have found that using daytrading techniques can help immensely. I watch several indicators for a buy signal. Indicators; 15,25 & 50 DMA, slow stochastics 5,3, Williams %R on daily charts, 25 & 50 Hour MAs on hourly chart , 2 & 4 HR.MAs on 5 min. chart also Slow Stochastics 5,3, and DMI(2), on both real time hourly chart and a real time 5 minute chart. Stochastics need to be crossing over, preferably near a stochastic bottom on all three charts ( ideal ). First find your candidate using the screen and establish that it is near support on daily charts and sufficiently oversold with appropriate volume characteristics. The 2 HR.MA ( 25 periods on 5 min chart ) must be flattening out so it can be used as support. The DMI indicator must have the DMI+ ascending and crossing above the descending DMI-, ideally the ADX line should be ascending. This will be first visible on the 5 min. ( great for daytrading ) chart but to increase the odds for longer term positions wait for the first indication of a DMI cross on the 1 hr. chart. Using this system I have found that with practice one can make an entry at any stochastic cycle on the hourly chart. Of course for best returns and minimum risk, entry near a moving average or trendline support on daily charts is best. This is just my humble opinion.
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