Thursday, March 29, 2007

Taking small losses

Yesterday -35

Today -38

I started out with a $55 gain but I was careless. I forgot that I had a buy stop order for RCL. It got triggered while I was reading some blogs. When I found out that I was in the stock I was already down over $50. I can't help but laugh at myself. I am so desperate to get a positive day and this happens.

Even though I am down I felt more I had more control today. I had more patience and I am beginning to notice some setups again. I just got to muster up some conviction to take the trades.

Here are three stocks I need to study. These stocks broke out and offered quick moves in the morning. I need to learn how to trade these moves.


IPS 15 minute chart

The smaller time frames gives you a clearer picture. Here is a 1 minute chart of IPS. Looks easy in hindsight. I wonder how long it would take me to recognize the trade in real time.


Flatwallet said...

None of these stocks had super clear setup to me. (my setup database is very limited). However, with MLM I notice the following:

If you look a the second widespread bar the volume is very light for such a wide bar. This usually means the move is over. However, be careful shorting it as it is still a strong stock.

X: I would know where to go long or short with confidence. Maybe and ORB. But you would need to look at the 1, 3 or 5 min charts to play this. Try paper trading these smaller time frames. You may be able to use your scalping skills along with your break out knowledge.

IPS seems to have a nice ORB on the 5 mins.

Anonymous said...

keep a list of high rsi stocks that keep making or are very near 52wk highs(free scanner at same concept of watching stocks continuing to make new intraday highs flagging/setting up near highs w/ nrb/inside bars. growth fund managers love new highs and technical trader do as well. plus one of the universal laws of trend/momo trading is stocks making new highs/lows usually continue to do so longer than people anticipate. if u double guessing urself on how to enter that early morning large thrust phase-
either 1. drop to a smaller time frame ala. 5min/1min and wait for small flag/x setup to enter,
2. use a daily type of trigger without worrying about exact execution, or
3. accept some will not give u and entry on the higher time frames.

Dinosaur Trader said...


FWIW, IPS is a very volatile stock. On a short-term\daytrading basis, it's not easy to trade because it is so hard to control risk. The stock can move over a point very easily, wiping out any type of responsible, intraday stop orders. I trade him occasionally, but it takes a lot of energy and I often miss other trades because I get so transfixed by the volatility.

I'd make sure that you're very careful with your position sizing trading a stock like this.

That said, he's part of a great industry right now. And where there's risk there's often reward... if you can manage to trim your losses.

onebadtrade said...

Thanks for you comments guys. The shorter time frames do look easier to trade for stocks that have these quick moves near the open.

It seems like more ORB setups occur when the futures have a sizable gap open. Have you guys noticed this?

About Me

I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.