How to Fix Buying High and Selling Low?

[joo_p23 10]

Hello,

 

I find myself always buying when the stock jumps and I get caught holding at a really high price. It limits my gains obviously or i have to take a loss on a sell off that hits my stop. When shorting, I find myself having the same problem. I short at the lows and have to cover for a loss.

 

how can i fix this problem?

 

need help.

 

thank you!

[TheDude 10]

reverse the buy/sell signals by the sound of it.

 

kiss.

[Tams 20]

Hello,

 

I find myself always buying when the stock jumps and I get caught holding at a really high price. It limits my gains obviously or i have to take a loss on a sell off that hits my stop. When shorting, I find myself having the same problem. I short at the lows and have to cover for a loss.

 

how can i fix this problem?

 

need help.

 

thank you!

 

pay attention to the volume behavior at your perceived "ideal" entry point.

all the clues are there.

[MightyMouse 12]

Hello,

 

I find myself always buying when the stock jumps and I get caught holding at a really high price. It limits my gains obviously or i have to take a loss on a sell off that hits my stop. When shorting, I find myself having the same problem. I short at the lows and have to cover for a loss.

 

how can i fix this problem?

 

need help.

 

thank you!

 

You might not have a problem at all. Buying the high and selling the low is a perfectly viable strategy if done properly.

 

If you are buying the high or selling the low and do not want to be buying the high or selling the low, then that is a problem. If you are intentionally buying the high or selling the low and hanging onto it far longer than you should be holding onto it and then covering it at a loss, then that could be a problem too.

 

Keep in mind that the only way a trader can make money off you is by making you buy high and sell low. So, you are doing exactly what the market wants you to do.

 

Of course, you can buy low and the sell lower or sell high and buy back higher. If you do either, then you are once again doing what the market needs you to do.

 

MM

[cbaer 10]

Hello joo_p23,

 

Take the time frame you trade divide it at least by 4 (max by 16)

then use some oscillator on it (Stochastics, RSI, MACD Histogramm etc.

contrary to popular believe parameters are not very important)

and limit your long entries to times when the oscillator is below 50%

(or zero with MACD). Reverse for shorts.

Let me know if this is a doable strategy for you, means can you stick to

that rule and with what result?

 

Regrads,

cbaer

[Dcash 10]

pay attention to the volume behavior at your perceived "ideal" entry point.

all the clues are there.

 

Tams any pointers as to what to look for in the volume?

[Tams 20]

Tams any pointers as to what to look for in the volume?

 

try this

The Price / Volume Relationship

http://www.traderslaboratory.com/forums/f34/price-volume-relationship-6320.html

[ilazarte 10]

I keep having problems with this too - my only solution that has worked for me so far has been to finally quantify the intraday swing price amounts in securities I buy.

 

If the move I'm thinking about buying has already gone as far as the average intraday swing amount (or near it), then I don't buy. The somewhat amazing part is then the "real" buy signals come at the very low of a previous sell, which is so scary to buy... More on this later as I try it out for a few weeks.