Quick Intraday Trade on FB

Guys take a bite at this trade! A good buddy of mine attempted to trade this one today and missed. It is a doozy! I would have probably given this one a shot, but there are a few areas of concern that would have violated the rules.

The trade is on TSLA. Entry point around 10:00. I made it clear that I probably would have given this trade a shot. I would have suffered a small loss, but again, I would have thought with as many positive indicators, I would be ok. The only concerns I have are, my ADX is not screaming up on my Action Chart being the 10. The other critical piece to this trade is, the DOW was floating in the "No Man's zone (not in the green 20 points or more on a call). I still probably would have tried to pop this trade. Under normal circumstances this trade would have allowed some profits to be taken, but in this case, it turned on that 10:10 candle. I would have bailed when the MF dropped and the ADX turned down. Again, my loss would have been very, very small. The lesson is, that DOW drives it all. Well, that is the way I think about it.

Kinda funny and ironic, but a good buddy of mine decided that this will be his last year working. Guess what he has been doing for the last several years? One guess? IF you guessed trading, you are correct. He bought a couple of hundred call contracts on AAPL back a few months ago. He sold the contracts this morning when AAPL was up $7. It was cool to hear the excitement in his voice. He is debt free, knows how to trade, and has put his time in.

Enjoyed that last sentence. Hope people will be saying that about me when I finally have "Choice".

TSLA out of the money 210 weekly puts went from 35 cents to $3 today almost 900% increase!! Wish I had traded those puts. This is the power of Friday weekly options!

Take your 233 & 55 chart. Draw an extended line at the $214.00 mark. When candles get close to that line look for a PUT. Buy calls carefully. TSLA is in a trading range of $206/$207 - $213/$214

ADD: 6/4/14 - Support broken



Edited 1 time(s). Last edit at 06/04/2014 08:14AM by Darcy2.

Thank you for a trading plan and rules!
This morning I almost traded LNKD. Major indicators were signaling a Put play. Well, the DOW's range was the factor that kept me from placing this trade. The DOW was not below or above 20. As most know, I am strictly momentum trading. If the DOW cannot make up it's mind which direction it wants to go, I AM NOT going to place that trade. If the DOW was at -20 and within less than 30 minutes, it rises to 15 points in the green, I might consider looking for a trade, but for the most part, I want see the DOW move in a clear direction and rise above or below 20. When the DOW goes in a definitive direction, 90+% of the time- stocks follow. Well, that is what I see through my foggy glasses.

My point is, trade by YOUR rules. Do not deviate from your rules. You develop them and practiced, so you live by them. I am finding less trades, but I will not deviate from my rules. The rules have gotten me to this point, so I will not abandon them now. Today, I shut down my laptop-smiling because I know if I would have violated one of the golden trading rules, I would be suffering a loss this morning. If you only knew how close was to placing that trade!!!! I did not lose anything, but I gained a wealth of internal strength and restraint. Develop and follow your rules-All of them.

Rookie30 I salute you for showing such a discipline! I wouldn't have taken that trade because SPY 5 min ADX and LNKD 5 min ADX at the time of initial breakdown below previous day low of 159 was less than 20 and LNKD did not go below 152.9 which is 30 min open range low - ATR (154 - 1.1 = 152.9)

Rookie,

Please don't take this as a slight AT ALL. If you are successful then by all means trade your way. However since most readers arrived via GW training, I think it would be prudent to say to any novice,"trade Gary's rules". Ultimatly, if the rules are followed consistently over time, the tree will produce fruit.

BCT

BCT,

I agree with you 100% ..."say to any novice,'trade Gary's rules'". Please do not take this as slighting you because I greatly respect the way I have read you trade.

Therefore addressing any GW novice...if you do not do everything the way GW taught then you are not ready to learn anything else. There is no fast way to be successful. If you do not devote yourself to studying, reading and practicing you are not ready to trade.

Before you add anything to what helps you see a trade learn what GW taught as to seeing a real move. Decide if you are a BCT or a SCT (BCT= Big Chart Trader, SCT=Small Chart Trader). IMHO generally a person isn't real good at both. This is why I do printing press rather than W/O. When I was little I took piano lessons and I couldn't sit still long enough to get past the G cleft. You know the saying, "to thine own self be true".

I have not abandoned GW's way of trading in 1-5 as far as HRFP/FP. However when I was invited to attend Expresso and RTP I understood that there was more to learn about trading options than 1-5 class. I yanked out my 1-5 manual and read it from page 1 to the end. After closing the manual I realized I did not read the Cover which read "Wall Street Basics".

As you see in cartoons a light bulb went on over my head! If GW is teaching more about trading the market then there was more to learn than the BASICS he taught in 1-5 and if GW could learn more so could I. If GW learned a lot from reading so could I.

I became a full time buyer at AMAZON and Barnes and Noble; not the stock mind you but of their books. I liked AMZON the best because I could get used books so cheap I'd buy a half-dozen at a whack. I practiced trading and applying different methods to GW's teachings. I applied myself to learning this to almost 17 - 19 hours a day 6 days a week that includes reading.

Now let me say to those who are novices...my virtual account began with 4 million dollars. I wanted to buy as many options on as many different stocks as I could. I am not saying I bought 1 million dollars in one stock. I mean I bought $3,000.00 dollars in contracts on maybe 10 -15 different stocks in a day. I only spent $3,000.00 because I knew that is what I would actually invest. By doing this I learned which stocks I could read better than others AND which stocks brought me more $ in the move.

I would also purchase stock and to be totally honest I did better trading than I did in buying stock. This is when I learned I didn't like waiting for a return but wanted gratification as quickly as possible.

In the TAD book (Technical Analsis for Dummies) the E signal (that's the name S/O and I gave it) was on Daily charts however S/O added it to smaller charts. One day after adding E, money flow and looking at the ADX on my small charts I began to hit every trade correctly. I stopped the see-saw trading I had been doing...you know up $200 down $150...up $400 down $450. My virtual account began to grow.

GW taught in 1-5 that you can use the 55 chart year round and that is exactly what I do. I seldom hold over night; I just sleep better that way. There have been a few times I have held but they are rare and only when the chart clearly said hold.

Now to the NOVICE PLEASE figure out which is best for YOU. Are you a BCT or a SCT? Do you trade NYSE better than NASDQ? Are your stocks more Pharma or Tech? Do you like big volume or small volume? Or are you all over the map and good at that or better at 2 or 3 stocks? Learn yourself...Yes I mean learn what YOU are all about and don't try to be anything else but YOU. In other words don't force yourself into anything you are not and if you once learn this you will not force a losing trade into anything other than what it is.

I totally respect and understand your points. It is my personality to always defend and take comments personally, but this is one time, I simply say, I am sorry for misleading or confusing any of the new traders. Yes, it is a bit prudent to promote, advise, and defend the style I trade, and in the same breath tell people to trade Gary's Rules-Got it! The core and foundation of my style of intraday trading derived from WSB, but overtime and out of necessity, I had to develop other techniques within, and in the process of what I was taught through WSB. I really did not realize how far I have deviated from WSB training until I went back and read some of my previous posts. Again, there is no disrespect to WSB, but as with so many others on the forum, deviating from 1-5 a bit based on reading some of the books, studying, and practicing- is not uncommon. I still encourage young readers to follow Gary's rules and develop a style that works for you. This is hard stuff and it takes time to master (if there is such a thing), but you have good people on here who will help.

I will refrain from discussing or posting my trading techniques because they are so different from the way new traders are taught. I will also encourage the developer of this site to erase my previous posts because as God is my witness, it was not my intent to mislead/offend anyone, or disrespect any of the 1-5 teachings. I just will conclude by saying, I have learned so much from both of you and appreciate what you bring to the forum. I will gracefully and respectfully back off and allow young and old (joking) traders to find their style of trading. I pray that what I have given to the forum has been of some benefit.
Take care and I hope all of you much success as you find your way through trading. I am a witness. This has changed my life!

Rookie30

Quote
rookie30
I pray that what I have given to the forum has been of some benefit.

Rookie, you've been a tremendous benefit to me. Since incorporating some of the trading techniques that you've espoused, I have been able to consistently move $500 from my trading basket into my bank account each and every week since the end of January. That is something that I was never able to do when strictly following the 1-5 rules.

Rookie,

I concur with Robert, please keep posting. Your post are valuable and many wait everyday just to read your thoughts. That's impressive. I am simply saying most traders (new or veteran) use part of GW rules and part that they have made up. If it works great, but I know Gary's works. Your post that I commented on was me simply saying the 1-5 rules work and give them a shot before you try other things.

BCT

Rookie, please keep posting as I look forward to your trades and your method has helped me also as it is still built on the foundation of the WSB. Thank you

Rookie 30..." I just will conclude by saying, I have learned so much from both of you and appreciate what you bring to the forum. I will gracefully and respectfully back off and allow young and old (joking) traders to find their style of trading. I pray that what I have given to the forum has been of some benefit. "

I hope by no means you were answering my previous post with this comment. My post was totally meant to bring the opposite reaction and was meant to encourage the novices to start with GW and read everything they can get their hands on. If this was the way you have interupted my post then perhaps it is best I back off and figure out how best to explain myself so that I do not get that sort of response. I sincerely appologize if you have taken my comment in that fashion. I am sure many here will miss you if you leave and instead of you I will bow out.



Edited 1 time(s). Last edit at 06/04/2014 10:43AM by Darcy2.

I concur with Robert, BCT, and TCB. I very much enjoy the posts from Rookie even though I am not a short chart trader. There are nuggets to be gained. If I were to give any advice to a novice I would reiterate sticking with the basics as taught, do the work, run the charts back, and learn how the timeframes you use work together. Once you know your pitch and have good basic fundamentals you can then start folding new stuff in if appropriate. GWs way does work. I made the mistake of reading all the books within the first year and trying everything. I could give you 20 reasons why a stock was going up and another 20 why it was going to go down. Created a lot of noise between the ears. My best friend is a retired student that has his "own way" using short charts similar to the methods mentioned in this forum. That said he still uses the basic concept of FP/HRFP and the core fundamentals taught in class. Keep posting Rookie!

NCT

Sorry, didn't mean to leave Darcy out. I think we were posting around the same time :-)

Please pardon my rant. I'm former Military, and I don't know any other way than direct!


Oh good grief!!!

Please everyone let's not turn this into a childish "please don't go" thread!!!

Rookie30, shame on you for being so "thin skinned" about this. These two individuals specifically stated that their comments were NOT be taken as a slight in any way. Yet you did so. I promise you they meant no disrespect, nor do I.

Yes, I to am going ask that you stick around and continue being part of this community. However, if you decide to quit the forum... well that's your business I suppose, I just think it would be a mistake.

Also, check your meds as you may have taken the wrong dosage this morning :-)


Rant over!


Having said that, can we now get back to the business of why we are all here, and save the drama for your momma!

R



Edited 1 time(s). Last edit at 06/04/2014 10:18AM by RichieRick.

Rookie, Darcy, BCT, Robert and all others who post on this forum. Your posts are all valuable and have nuggets of information that can be tried and used. Everyone has their on style and and has to find something that works for them and thanks for the willingness of the ones here on the forum to share what they have found that made it work for them and by doing so have helped others find a nugget to incorporate in their way or stop and think hey let me see what will happen if I try that. You might be stuck and come across a shared idea that might make a light bulb come on. If it works for you then great add that tool to the foundation you already have on WSB, if it doesn't then you are no worse for the wear and keep moving forward and learning. You can always learn something new, and you can't have enough weapons to defeat the market maker (lol). To repeat a phrase we have all heard before if you want to be successful find someone, (someplace) who has done it and do what they do. There are many ways to be successful and many tools to use and thank God for the people who are generous enough to share their ways they did it, to show us that it can be done and give the encouragement that some of us others need to perservere and keep going! So, everyone, PLEASE keep the post coming, thanks to all

RichieRick Wrote:
-------------------------------------------------------
> Please pardon my rant. I'm former Military, and I
> don't know any other way than direct!
>
>
> Oh good grief!!!
>
> Please everyone let's not turn this into a
> childish "please don't go" thread!!!
>
> Rookie30, shame on you for being so "thin skinned"
> about this. These two individuals specifically
> stated that their comments were NOT be taken as a
> slight in any way. Yet you did so. I promise you
> they mean no disrespect, nor do I.
>
> Yes, I to am going ask that you stick around and
> continue being part of this community. However,
> if you decide to quit the forum... well that's
> your business I suppose, I just think it would be
> a mistake.
>

+1



Edited 2 time(s). Last edit at 06/04/2014 09:12PM by trendtrader1.

There is more than one way to bake a cake...Gary said, "successful people find what works and they keep doing that over and over." I feel that 1-5 is a great start, but you have to find what works for you.

Let's just get successful at this and say, "f@$! A job LOL!!!!

Rookie 30 please come back. You have been an inspiration to me and I have learned a lot from you and I have started incorporating it in my trading. For example watching the 55 min ADX, and the Money Flow exit strategy. Keep doing what works for you and please keep sharing your pearls of wisdom

Tan

Thanks BCT and Darcy for your comments. I also appreciate the kind words that were stated from others. Richie Rick, I respected all comments stated until you felt the need to make personal attacks. I respect that you have a background in the military, but just know, it is presumptuous to assume it is COOL to insult people- ESPECIALLY WHEN YOU HAVE ABSOLUTELY NO REASON. I do not know what position you held in the military, but if you attack and insult people the way you attempted to insult me, I pray that our young men and women who serve this country were not subjected to your leadership. In the past, I would have been steaming and would have retaliated with childish rants and challenges. Instead, I am going to take this high road and continue posting when I feel I have something that is beneficial for others. I will also send a prayer or two up for you. As I said in the beginning and will again, I never meant to mislead or disrespect anyone. I hope we can stop this and move forward. This horse is dead!!!!

"Personal attacks", lol. Now that's a good one!!!

We will just have to "agree to disagree" on that one.

Also I think your "prayer" concerning my leadership went unanswered, because I pounded them into hardened steel!! I'd prefer you just said, "Thank You".

At least you are gonna stick around, and I like that.



Edited 2 time(s). Last edit at 06/05/2014 10:54AM by rttforumadmin.