Built a wall from small charts!

Yesterday I bought puts on NFLX. I trade very diffferently. I use a 13 chart as my decision and the 55 as my trend. Trading NFLX was a "no brainer". This has become one of my favorite stocks to trade. I absolutely love the 10:09 candle off the 13. When that candle shows a solid "E" off the 13, and the 55 gives me a solid base, I become a sniper, waiting for the perfect shot. At 10:09, NFLX had broken the previous days low, Direction Movement was up, MF signaled, the market had started to turn in my direction, and the 55 was giving me a really strong push from 6/11. All candles were below the 8 MA on 55 and 13. I popped the trade off the 13 at 10:09. I rode NFLX down all day. I almost got washed out around 2:00, but the Directional Movement on the 55 was still heading up, and I was in a profitable position, so I stayed. I am really glad I did because NFLX charged down for another big drop around 2:15. I rode NFLX down $5 for a very, very good profit. I was in this position for a lot longer than I am accustomed, but it worked in my favor.

I was watching a show this past weekend that magnified the mindset and demeanor of the world's most respected military snipers. Of course they could not reveal the identity of snipers who are presently in the military. When interviewing these guys, it was absolutely amazing how calm and relaxed they were. Their mindset and demeanor when talking about missions were truly amazing to me. Of course, we know what "missions" are for military snipers. I learned a lot about the need to trust my research and training. These guys would lie in wooded areas within feet of enemy soldiers and only move inches- in the course of 48 hours. When finding their target, they relax, lower their heart rate, re-access the approach, and zero in on the target. My point is, true snipers are some of the most skilled and accurate players in the game. They cannot make mistakes. I want to become a true sniper in the game of trading. I very rarely miss off the small charts (13), but I will continue to train and study. Those who protect our country are some of the most brave, intelligent, and skilled people in the world. As Gary said to military vets, "I truly appreciate you standing your watch".

Trade hard!
Rookie 30

hi rookie30:
I have a couple of questions for you- just trying to understand what you did:

so do u only use a 13 for the E signal? no 10 or 8? (2 charts or 1 for this)
do you incorporate the 21 at all? (or just 13 for the decision)



Edited 1 time(s). Last edit at 06/14/2013 12:27AM by NMR.

NMR,
I am sorry I am so late responding. I have transferred to a different job, so the adjustment has presented it's challenges.

Yes, I use the E signal from the 13 chart. I take a glimpse at the 8, but it is so close to my 13 until, it is typically very similar.

I do not use the 21. I use the 55 as my trend because I know I am most likely going to be in my position for 1-5 hours. I really like the 13 because it seems to work excellent with my trading style and techniques. When I get signals on the 13 along with a break in the previous day's high or low, I profit 9 times out of 10.

I am finding that during the summer trading zone, it is very important to know where your areas of resistance and support are. It is important to find those areas of support and resistance on your decision chart as well as your trend chart. My stocks are trading within ranges. It is pretty cool when YOU find clean R and S areas. When those areas are broken, something will always happen. When candles reach an area of S or R, they either go through it, bounces off of it, or flatline. If you know the tendencies of your stock, you will clearly know when to take the shot. Remember, if you choose to trade off small charts, you probably should have several indicators that you use to confirm a trade. If you are wrong and hold, praying for a miracle, you could lose money very quickly. You are either right within the first 10 or 15 minutes are you are wrong. For me, I give myself a maximum of 2 candles or 26 minutes on my decision chart. If the second candle starts to paint against me, I am out. If the first was flat and the second looks to be flat, I check smaller charts to see if candles are bumping on S or R. I much rather exit and take a small profit or small loss opposed to, staying in and facing a sudden drop.