I traded off a big chart!

I have been paying close attention to a few things posted from BCT who trades off big charts. I did a practice trade on BIDU on 5/06. I made the trade off the 233. I saw a FP on the 233. I waited on the 5th candle off 55. I wanted it to cross the 50-Day. I saw my "E" forming and notice the DM was moving in my direction as well. The position of the candles on the Daily and 233 gave me confidence that I had a little run in this stock. In hindsight, I probably should have waited one more day, but I felt like I had enough going in my direction to place a trade. The other really big component that convinced me the trade would go in my direction was RTT trend analysis. BIDU has a very, very strong trend for this week, so I entered with that added level of confidence. I bought Calls and trusted my technical approach to the trade, so I did not look at my virtual account after I entered. I took a look at the candles about once every 2 or 3 hours. That was pretty peaceful! I knew I was going to try this until I had a clear indication to get out. I wanted to see if my big charts were leading me correctly. Well, I just sold the position this morning. I bought calls at around $87 and sold this morning at $92 when Money Flow dropped below the 80. I know that was not a perfect trade, but it worked for me, and I think I know exactly why it worked.

Since I research and backtest so much, this trade feels like luck. I do not like lucky trades because I question if my process worked or was it LUCK! I want to spend some time testing the approach I took on this trade. It feels good and feels as if it a good approach. I just have to test it and test it before I drop my money on the table. As Gary suggested, spend as much time breaking down the good trades as we do the bad ones.

I am in CRUS right now and it is looking pretty good, but we will see how it goes.

Sorry to come back out so quickly, but I wanted to state that I just exited my CRUS trade because the NAS and DOW are down and my rule is, I do not trade against the Market, so I took a $175 profit and left the trading table for the day. The market was up, but now it is back down. Gotta a little crumbs, so shutting down the laptop and taking it to the car.

Rookie

Great BIDU trade. I didnt make this trade because I dont typically trade BIDU often but I had a good friend who did. I would have entered this trade on the 2nd 55 candle on May 6th and I would still be in that trade. The reason I would have stayed is that I would expect BIDU to reach its 200 MA on the 233 and its 20 MA on the weekly.

BCT

Good job on BIDU I went and looked at it and everything was yelling at you to pull the trigger. It was signaling up all the way across all time frames, D, 233, 55,13. I wouldn't say it was luck. All evidence was there for the WORK! I usually trade off of the bigger charts and since joining this forum have been venturing into the smaller charts a little more with guidance coming more peacefully off of the bigger charts. What chart did you enter CRUS off of? It looks to continue up, the futures look like they are finding support and might be turning to the upside?

I based the CRUS trade off my 13. I new it would be short, so I used my "bread and butter" chart. It continued up, but that little turn or pull back had me a little concerned. I really thought it was going to turn with that little PB. I did not not have much under me at the time, so I decided to take the crumbs and head for the hills.

In nothing today. I really hate split markets. To me they cause a whipsaw effect and I don't like my neck broken.

Great trades all!



Edited 1 time(s). Last edit at 05/10/2013 02:38PM by Darcy2.