When I first started trading I thought these trending days would be ideal. But now I find them very difficult to trade because nothing sets up properly. In the afternoon I was seeing plenty of inverted cups or rounded tops, but the handles never formed because of the lack of buyers. I think the issue is that our setups require a little bit of tug and war between buyers and sellers, with one side capitulating, leading to a breakout. Not to mention these trending days are so rare that we have the least experience with them.
Unless the jobs data is outstanding tomorrow, we may be in for more of the same. Futures continue to stair step lower after the close. And rumors abound re: more hedge fund liquidations.
I'm going over the watch list to stake out the best candidates. A lot of stocks are way oversold but some of the stronger names are testing support.
How do you normally put trailing stops on your trades, esp. the LEH trade? I have been stopped out from a lot of good trades in August. Something I have to work on.
Normally, I would take a stop when price carved out those inside bars shortly after BO - set stop above the base of the IBs, but I had too many trades on the go at the same time.
The markets are jittery so it doesn't hurt to take a partial when price seems unsure.
Despite the big drubbing, I found the markets choppy and difficult to find good spots. Here are two trades that worked out.
6 comments:
Jamie,
What a great trade in AAPL! I love that chart, it shows that people have definitely lost interest and it just falls off.
I scalped it to erase my earlier losses, but nothing to be super proud of.
Tyler
When I first started trading I thought these trending days would be ideal. But now I find them very difficult to trade because nothing sets up properly. In the afternoon I was seeing plenty of inverted cups or rounded tops, but the handles never formed because of the lack of buyers. I think the issue is that our setups require a little bit of tug and war between buyers and sellers, with one side capitulating, leading to a breakout. Not to mention these trending days are so rare that we have the least experience with them.
--End of venting--
Rick
Thanks Tyler,
Breaking even on a difficult trading day is good.
Rick,
Unless the jobs data is outstanding tomorrow, we may be in for more of the same. Futures continue to stair step lower after the close. And rumors abound re: more hedge fund liquidations.
I'm going over the watch list to stake out the best candidates. A lot of stocks are way oversold but some of the stronger names are testing support.
Jamie,
How do you normally put trailing stops on your trades, esp. the LEH trade? I have been stopped out from a lot of good trades in August. Something I have to work on.
Day Tradr,
Normally, I would take a stop when price carved out those inside bars shortly after BO - set stop above the base of the IBs, but I had too many trades on the go at the same time.
The markets are jittery so it doesn't hurt to take a partial when price seems unsure.
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