My S/O's trade

This morning my significant other hollered out ‘TRADE CRM FOR QUICK $$$”. Now I don’t generally trade quick money and I do not trade right at the open but I did do it this time. I do not trade off small charts but I have noted that stocks seem to pop early and then go flat.

I know Gary has taught us that amateurs trade first in the morning but lately I have been noticing stocks popping at the start with NO NEWS and then staying flat all day. So I wondered….Is it possible that pro’s trade early as well and that stocks that have no news surrounding them that pop early are really the pros buying?

After I entered the trade I went to ‘Briefing’ to see if there was any news about CRM and noted that on Dec 7th “Directors (3) sold a total of 36,300 shares at $155.94-158.70 on 12/3-12/5, worth ~$5.7 mln”. That was all the information on CRM. “Hum, I thought so why would amateurs jump on CRM with no news pushing the stock up like crazy?” My conclusion was I didn’t think they would. Now mind you I am not saying this is a scientific study or that this is how it is. I am saying that it would not make sense for a stock to pop like that with no news when most amateurs buy on the news early in the morning.
I stayed in my trade that started at 9:34 this morning. I bought 7 contracts @4.15 …5¢ higher than the Ask. (Total $2,919.85) I remained in the trade until 9.40 and sold my 160 call lower than the Bid …or for 5.65 total 3969.95. The option did go higher…up to 5.80 (even higher by 11:00) so I was out of this trade quickly. My profit was 1050.10 or nearly a 36% profit.

I have NEVER traded like that before but my significant other (from now on called S/O just easier to type) trades like that often and wins about 85% of the time but lately batting almost 100%. My S/O watches the ‘net’ and then looks at the charts. I on the other hand watch the charts and then look at the net.

This trade was fast I mean F-A-S-T…and needless to say I sweated bullets because I just don’t trade that way but am smiling now. Although CRM did a slight pull back it is still going higher. But I am happy in Seattle and really happy I have a ‘team-mate’. I wouldn’t have traded it until the pull back and lately this market is driving me NUTS on pull backs!!!

Darcy,

It is so crazy that your significant other trades that way. That is the way I trade!!! I try not to admit it to anyone because rules are broken and I do not like to promote trading against WSB, but I do well with it. I have multiple trades in a week. We are taught 5-10. I shared with someone on a private message that I traded 4 txs last week. 2 big wins, 1 huge win (best YTD), and one small loss. I also shared that I had a small loss yesterday, but had a huge gain on AAPL today. It all balances out for me. I trade with discipline, but totally salivate when I see one of my expert stocks moving in my direction to pop the trade.

I have listened to Class 4, disc 2, frame 3 over and over again. I am so ready to start my tortoise and hare account! I will follow GW's rule and trade real money for a year- or almost a year. I am not a run a way train, but I am a Sniper and Gunslinger.

My goal is this, I want to only trade from October to May. I am not interested in trading during the summer. The summer has not been kind to me. The thin market kills a Gunslinger. I want to have a T and H account and go ALL IN on a few strategic trades during earnings. My Hare account will more than supplement what I would like to make during the summer.

This market is perfect for a gunslinger. As I have said this is the hardest market I have seen in 8 years. Looks like it trades far more on the news than it ever did. I think it is fear moving the market up and down. But then this is usually a choppy time. And brother it sure is.

Frankly I usually do not trade hardly at all during Nov 15th to Jan 2. Too many holidays.

Interesting that you both mentioned this because I've starting trading this way about 5 months ago. My theory is that there isn't anymore amateurs to send in buy orders. So, the morning start for pro's is pretty early. A friend of mine gave up on gary's method because the market doesn't seem to follow the pull backs right now according to his experience. Also, the overnight risk is too great. So, he sells by the end of the day no matter what. He has been doing better than me. In the last 2 months he has had a $30,000 week. I find it hard to rely on the short charts but I pull it off once in awhile. I still struggle with loss tolerance. Gary says if the bid backs up he's not in it anymore but, more of the successful trades bounced around before continuing higher. Has anybody found a loss tolerance that works? My guess is that it any loss tolerance that works changes with the wind.

My trades are quick. I am almost always out by the end of the day. I simply do not wait on a pullback. I have tried waiting on the pull back, but I have left hundreds of dollars on the table. Now, I enter when the trade presents itself. I have found that sometimes the pullback can be presented, but in reality, it is an early reversal signal. I know most of you are saying, "learn how to read your candles". I am simply a trader who has never felt comfortable entering on a red going up, or a white going down. No way. I just can not do it! I want to also want to make a contradictory statement, Please follow Gary's rules 100%. I am not a person that has any authority to make comments against ANY of his rules. I just feel impelled to be honest about my trading approach.

If you find the right stocks to trade, there are consistencies that occur. One thing I have found in most really good traders, is they all find those consistencies in their expert stock(s). Of course, they keep that information behind lock jaw and key, but they have sure winning trades EVERY MONTH!!! I have probably spent over 100 hours on 2 stocks-looking for sure consistencies. Fortunately, I have found one. Yes, just one! I found a consistency that happens 3-5 times a month!! When my gem sets up and does what it is supposed to do, It will always run in my direction, for 30% or more. The best run was for over 300%! I have gotten to a point that when it shows, I ALWAYS go in with 1/2 of my basket-period! I look to exit if needed, but I have not been forced yet. I shared that information with you because I do not know any traders who have reached retirement choice and not have found gems along the way.

My former mentor once made a $42,000 trade when his "gem" showed up. It ran hard for 2 days! He has made over 100K in a month by playing his "Gem". After seeing him try to control his emotions during the 42K trade was so crazy. He was trying to keep his composure, but he literally did not sleep the night before he sold the position. He did not go to work the day he sold the position. He told me he spent the day regrouping and regaining his composure. The same month he continued to trade well and earned over 100K. After that experience and his constant encouragement for me to find a "Gem", I simply knew I had to find one. I want to find another one, but I am not going to give up quality time spent with the wife and kids! No going to happen.

rookie30 Wrote:
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> My trades are quick. I am almost always out by
> the end of the day. I simply do not wait on a
> pullback. I have tried waiting on the pull back,
> but I have left hundreds of dollars on the table.
> Now, I enter when the trade presents itself. I
> have found that sometimes the pullback can be
> presented, but in reality, it is an early reversal
> signal. I know most of you are saying, "learn how
> to read your candles". I am simply a trader who
> has never felt comfortable entering on a red going
> up, or a white going down. No way. I just can
> not do it! I want to also want to make a
> contradictory statement, Please follow Gary's
> rules 100%. I am not a person that has any
> authority to make comments against ANY of his
> rules. I just feel impelled to be honest about my
> trading approach.
>
> If you find the right stocks to trade, there are
> consistencies that occur. One thing I have found
> in most really good traders, is they all find
> those consistencies in their expert stock(s). Of
> course, they keep that information behind lock jaw
> and key, but they have sure winning trades EVERY
> MONTH!!! I have probably spent over 100 hours on
> 2 stocks-looking for sure consistencies.
> Fortunately, I have found one. Yes, just one! I
> found a consistency that happens 3-5 times a
> month!! When my gem sets up and does what it is
> supposed to do, It will always run in my
> direction, for 30% or more. The best run was for
> over 300%! I have gotten to a point that when it
> shows, I ALWAYS go in with 1/2 of my
> basket-period! I look to exit if needed, but I
> have not been forced yet. I shared that
> information with you because I do not know any
> traders who have reached retirement choice and not
> have found gems along the way.
>
> My former mentor once made a $42,000 trade when
> his "gem" showed up. It ran hard for 2 days! He
> has made over 100K in a month by playing his
> "Gem". After seeing him try to control his
> emotions during the 42K trade was so crazy. He
> was trying to keep his composure, but he literally
> did not sleep the night before he sold the
> position. He did not go to work the day he sold
> the position. He told me he spent the day
> regrouping and regaining his composure. The same
> month he continued to trade well and earned over
> 100K. After that experience and his constant
> encouragement for me to find a "Gem", I simply
> knew I had to find one. I want to find another
> one, but I am not going to give up quality time
> spent with the wife and kids! No going to happen.


Awesome information and encouragement on finding a "gem"!