Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.
howthom
-
Content Count
9 -
Joined
-
Last visited
-
I also trade pullbacks and will hold from 1 day to 4 months. I have a couple of suggestions for you to look into. If you typically trade using the daily chart, look at the weekly and sometimes monthly charts for levels of major support and resistance. Once you have established those levels, make your trades near those levels. I use the weekly chart for my signals and move to the daily and 15 minute for timing the decision to buy/sell. I've discovered getting in near the beginning of a trend ( after the first HH and LH has occurred and there is a visible level of R above) works better for me than simply buying pullbacks on a stock making newer highs. I also look for strength in the move at the level of S (ie. are there wide ranging bars closing higher, was there a down bar followed by an up bar closing at least halfway up the down bar...signs of strenth). Stop placement is also very important (too tight and another test stops you out, too loose and you leave $ on the table). But...the most important piece is, what is happening with price at the levels of S/R. As a swing or position trader, I have found the lessons on the Wyckoff forum to be invaluable. I hope this is helpful.
-
Price Action Patterns Do Not Mean the Market Isn't Random
howthom replied to 1a2b3cppp's topic in Technical Analysis
1a2b please continue with your thread. I think I understand what you are saying about treating the market as if it were random. There are times when I enter a trade at a level of support, on a WRB up, with all the stars lined up and for some reason the next day or two, watch it reverse direction. I understand that for some reason supply entered and demand weakened. But, I don't know why. If I were to hold to my position, that there still must be buyers there because I saw that strong demand a couple of days ago and not follow the reality of what I'm seeing in the moment, I could ride a loosing trade. So, to me in that instance, the market feels random. It probably isn't because the people who are driving the price down and catching the long stops on the way are doing it to make money too. So, I think I understand what you are saying. And as you said earlier, it works for you to think that way. So, please continue with your thread. I'd like to hear about your entry/exit and money management strategy. -
Are you trading these setups? If so, do you mind sharing your win/loss percentage and average hold time? And, can you talk about your exit strategy. Thanks.
-
I've been reading this thread from the beginning and wanted to add my observations. The killings in Newtown created strong emotional reactions in most who witnessed the horrific event. The reactions come out of a sense of what's right and whats wrong and, a sense of compassion for others. The piece I feel missing is the individual awareness that these strong feelings we are having come from our beliefs. The question I ask is, do these beliefs and reactions serve me and bring me closer to my ideal. I know even mentioning the word ideal will stimulate a variety of reactions, but for me, it's become something to consider. To have an ideal is to have a goal or something to aspire to. It gives direction. When we have a clear direction we can see when we begin to drift from the path. When we drift from our course, we make adjustments. So, I ask myself, what is my ideal. What does my ideal world look like. What does the ideal me look like. And, what adjustments do I need to make to stay on that course. It can be challenging to keep focused when there is so much divisiveness, greed and hatred. Human beings have the capacity to be wonderful and destructive. My sense is that each of us has the ability to awaken to a greater self and larger purpose. It seems a narrow perspective to ask whether we should have more guns or fewer guns. What if we were to ask, what does it mean to be human? What are the characteristics of an evolved society? And what can we do both individually and collectively to move closer to those ideals? Just something else to consider.
-
I agree somewhat with equtrader. There is a place between daytrading and trend following that for me offers and edge. I trade off of weekly and daily charts looking for opportunities to enter on changes in demand/supply. I generally hold anywhere from a day to 3 months. I guess that makes me a swing trader. The trading principals are the same as daytraders ie; locating support/resistance areas, stop/loss, price action/money mgmt etc. The main difference is the timeframe (D&W chart) I work from. Since I've been lurking on TL, I've seen very few posts specifically about swing trading. Are there no swing traders out there following TL?
-
Hi All, I've been reading, absorbing and laughing with members of TL for a couple of years now (time does fly). I found TL through my searches for info on DB Phoenix. I swing trade stocks and sometimes ETF by locating trading areas at levels of support and resistance. I've managed to be fairly successful trading, but still continue to work part time at a business I've owned for over 30 years (can't seem to let it go). For relaxation, I enjoy sailing the beautiful Pacific Northwest, playing guitar and keeping fit. I haven't seen a post by DB in quite sometime and hope he is doing well. His lessons certainly helped my trading account. Does anyone know how he is doing?
-
Ray Dalio, Founder of Bridgewater Associates
howthom replied to Tradewinds's topic in General Discussion
Thanks Tradewinds. It's refreshing to hear someone who recognizes and is willing to talk about solutions to difficult problems come about when intelligent minds cooperate with one another. This is a test of "US" as he so eloquently stated. -
I've been lurking for a while hoping to hear from others who trade longer term. I consider myself to be a trend trader. There are lots of definitions for a trend depending on the time frame one is using. I trade from the weekly chart and move to the daily for confirmation and specific entry. I screen for stocks/etfs that have been in a trend within the past year, have reversed or consolidated and are now beginning to move higher again. I look for price to close above the 8ema on the weekly chart for two weeks and the fast macd to have crossed over it's signal line. I then go to the daily chart for a specific entry point and to determine my stop/risk. Once in the trade, I hold and view the action on the weekly chart waiting for a specific signal that indicates to me the trend may be ending. Trading from the weekly chart eliminates much of the noise and allows me to stay in a trade longer. I've discovered when I traded on shorter time frames, I often times entered and exited trades either too late or too early. The longer time frame has allowed me to "see" the trends more clearly. I'm interested to hear from other longer term traders. What works for you? How do you determine your entries and exits?