Trading US stocks

[knightrader]

Are you looking at your investments based on last week's price or last month or last year? Is your investment on bullish or bearish pattern? In trading, we encounter BOTH patterns simultaneously in many occasions. The long-term may seem bullish so we have long-term position trades while the same stock may seem bearish in the 5-minute chart so we trade down or short the SAME stock in intraday grabbing the short-term nickels and dimes even while we keep an eye to adding to our long-term positions. How do you trade the same stock up AND down at the same time? Simple. You open multiple trading accounts so as not to dilute the trades.

Proper perspective in trading need to be applied in multiple timeframes. Let me rephrase that: apply perspective in ALL timeframes from 2-min, 5-min, 15-min, 30-min, 60-min, daily, weekly, monthly. We even look at yearly charts in case of gold. Those huge 12 individual bars provide excellent background. Unless you view trading in all timeframes and apply multiple strategies, Up Down and Sideways and divide your trading with those that provide income and those that build wealth, you will have a hard time discerning the real market moves. Some traders specialize and only trade certain timeframes yet... they still have to watch ALL timeframes for proper discernment. Multiple timeframe, multiple-directional technical trading is the only way to survive volatility or even sideways action. The rest is simply gambling.

http://www.acting-man.com/?p=17123

[babyland]

hey knight,

What do the charts tell you of doing a swing trade (perhaps 3-4 weeks) on SKF (daily charts)? If Greece/Spain goes down, financials are going to take a hit.

[knightrader]

hey knight,

What do the charts tell you of doing a swing trade (perhaps 3-4 weeks) on SKF (daily charts)? If Greece/Spain goes down, financials are going to take a hit.

I call swing trades on stocks with moving averages all lined up. Though the 20MA daily on SKF has reversed up, it is still below the 200MA which will provide a major resistance. I would call this trade hit-n-run. It looks like a swing trade because the intermediate moving averages have crossed over to bullish formation except.... the major (wall of china) 200MA.

The buy trigger would have been around 44 breakout of previous pivot tops. Profit or half profit would have been taken around 50 then added to position on the bounce off the rising 20MA. The trade is still on-going and waiting to take profits close to the declining 200MA overhead. The best entry point has passed. I will wait for a better entry on reversal/bounce off support. If the 200MA daily can be breached to the upside, a hit-n-run trade can be put in and profits taken on the the first lower low red bar. Then wait for a test of the 200MA daily and a swing trade can be initiated from a successful test/bounce off that major MA.

Trading, like a game of live poker, is a WAITING game. We want the profits to drop right on our laps; meaning waiting for the best entry point and not chasing a stock passed it. There will always be another buy (or sell) point and yes, most of the time the next buy point is a higher price.

[babyland]

Thanks for the excellent reply.

You are absolutely right that trading is a waiting game. I am tempted to chase the stock sometimes though because as you said, "most of the time, the next buy point is a higher price". And I don't want to buy at a higher price! My mind tells me - why buy at a higher price when you can buy now at a lower price even if you chase it?

[knightrader]

Thanks for the excellent reply.

You are absolutely right that trading is a waiting game. I am tempted to chase the stock sometimes though because as you said, "most of the time, the next buy point is a higher price". And I don't want to buy at a higher price! My mind tells me - why buy at a higher price when you can buy now at a lower price even if you chase it?

Most of the time, the next buy trigger is a higher price because it already showed its strength breaking resistance, higher pivot points, etc. You can play this game with a twist by doing a hit-n-run trade (a trade that usually last for a day or 2) with an intention to take the profits when it gets close to target (resistance) but can cash in only half. The rest you can ride until it reverses again this time to a support (prior resistance) and you can also put in the other half you took out. I would probably add much more if a stock can break the 200 moving average then have a successful test of it with a higher high bounce. It takes a lot of interested buyers (lots of institutions) to break this major MA.

Many ways to play the game. Understand the basics then apply your personal touch. You will know it is your personal niche when you can make consistent profits (good batting average, not perfect run) and feel comfortable with the professional losses (small). There is always risk on the first trade on a buy/sell trigger but once it goes your way, there are many ways to take or protect or insure the profits. After the trade goes your way, there are ways to eliminate risk and ride a no-lose trade while you look for another candidate.

Money management triumphs over trading skill but why not have both? he-he

[knightrader]

I just like the pic of Raghee Horner's trading desk. Nice set-up. I have seen many traders with many configurations of monitors and computers. Some even have 16 monitors! This is a personal matter as traders have different styles and personality. I am at home with 4 monitors but is thinking of adding another 4 for more information. That is the reason for multiple monitors; to be able to watch multiple charts in multiple markets in multiple timeframes.

http://money.cnn.com/2011/07/21/mark...ding/index.htm

http://i2.cdn.turner.com/money/2011/...horner.top.jpg

[knightrader]

They say it is not a crisis until it hits you. ha-ha The Philippine Peso scoring against the US Dollar. As the Philippines is increasing its gold reserves and its banks following safe margins, the US is bent on destroying its currency and continual deterioration of its upside-down banking ratios. The end result is not that hard to envision. Hopefully, the Philippines will not assist the USA in its manipulative ploys in order to have a semblance of military blanket of security against the Chinese. Trading freedom for security has never been a wise choice throughout human history. With better leadership, the Philippines will cope much better than the USA when SHTF.

Why You Absolutely Must Have Food Supplies, Hard Assets and Reserve Cash

While many refuse to believe that it can happen, evidence for why it is absolutely critical to stock up for hard times and worst case scenarios is and has been staring us in the face for the last several years (never mind the thousands of years of historical precedent).

The latest warning signs are, once again, popping up in Europe and should be taken seriously, as it is only a matter of time before such events play out in the rest of the world, including right here at home....

http://www.shtfplan.com/emergency-pr...-cash_06112012

[HumanKnowledge]

What is wrong with Penny Stock?

I don't have much knowledge about investing or trading, but I opened a Merrill edge account. I just want to know first about how it works. So, now I am waiting for a safepass code, so I could buy high risk securities.

I'm monitoring a certain penny stock right now, and for about $600, I could buy several thousand penny stocks, and earn a profit of around $100 when the price change by a cent. I am buying and selling it in a day, so I don't really see that much risk.

But then again, I've never done this before.

[babyland]

Penny stocks usually have low volume, could be easily manipulated, usually hyped, questionable fundamentals. In other words, very high risk.

Penny stocks are just like gambling in a casino. Your odds of success are not very high in the long-run.

Note also that most brokers charge a higher commission fee on penny stocks.

Just my 2 cents.

[HumanKnowledge]

Penny stocks usually have low volume, could be easily manipulated, usually hyped, questionable fundamentals. In other words, very high risk.

Penny stocks are just like gambling in a casino. Your odds of success are not very high in the long-run.

Note also that most brokers charge a higher commission fee on penny stocks.

Just my 2 cents.

The stock I am watching is NASDAQ: SAPX. It is very highly volatile, but I am hoping the price will go up like ROSG.

It is not OTC or trading under Pink sheet, so I am only paying the flat fee of $6.95 commission.

It is an undervalued stock. The book value is worth 5 times more, but yes, while watching the prices, I do notice that there might be some manipulation because prices go significantly down then up in a second.

I don't know. I am dialing a prayer that I'll get lucky.

[knightrader]

The stock I am watching is NASDAQ: SAPX. It is very highly volatile, but I am hoping the price will go up like ROSG.

It is not OTC or trading under Pink sheet, so I am only paying the flat fee of $6.95 commission.

It is an undervalued stock. The book value is worth 5 times more, but yes, while watching the prices, I do notice that there might be some manipulation because prices go significantly down then up in a second.

I don't know. I am dialing a prayer that I'll get lucky.

There is no room for hope in professional trading. Trading can be gambling if you do not have a trading plan. I plugged SAPX in my charts and I cannot find any triggers in the intraday or daily charts. The weekly is pronounced as far as the declining 8MA which is acting as strong resistance. The trade is SHORT if SAPX approaches the 8MA and move lower low. But then again, there is not much to gain shorting a 3 cent stock even if it goes to zero! You are better off buying a stock that has good intraday volume with bullish triggers. You do not need to buy a lot of shares if position or swing trading. Buying blocks of 10,000 shares are for professional daytraders and they DO NOT use their own money! There is no interest if a trader goes flat by the close of the day meaning go back to cash. It is free capital for us. Study swing trading. It is a niche timeframe away from the daytrading sharks or the heavy-handed institutional traders. It is where you pretty much trade against other swing traders. Not a good scenario for newbies but it has the best probability for the greenies. I will not wish you luck because trading is very little about luck. It is mostly skill day-in and day-out. The food sector is moving right now in wheat, corn, soybeans. All related trading vehicles are tradable in all timeframes. You cannot get lucky trading. It is not a lotto gaime. This is serious business. You should approach it as one because you are competing with those who, to put it mildly, are NOT your friend. he-he

[knightrader]

Even though manipulated markets are tradable as the the same technicals apply, it is akin to abetting the criminals and helping their cause! Our only recourse is to use some of the trading profits and take as much gold and silver physical bullion out of the markets. Gold is precious metal because it is rare. Gold is the central bankers nightmare because there is no counter party. The central banks are now either stop selling gold or started accumulating them. Even the Philippines is buying which makes me even more bullish for this country. he-he

The trading game is now a manipulated game using fiat money. There will be an end to this. And it won't be pretty. You need insurance in the form of physical gold and silver. You can always purchase the next foreign currency with gold when it comes into the world scene. No it won't be the Chinese Yuan. We are looking at the Euro although we are not sure in what form financial metamorphosis will create. Europe is the next superpower. Not Germany. Not France or Italy. But a full-pledged politically united Europe with a single Treasury and Central Bank. That is still ahead of us. This union will NOT include the UK.

Gaming the System
by MIKE WHITNEY

“If there is any message of the last few years, it’s that banks and bankers simply cannot be trusted.”
– Tim Price, Asset Manager at PFP Group LLP

http://www.counterpunch.org/2012/07/...ng-the-system/

[HumanKnowledge]

^^^

wow -- what you just said is all true.

Good thing I sold SAPX when it hit .04. Now the stock just HALTED.

Probably a fraud investigation.

[HumanKnowledge]

what happens when a stock is suddenly delisted per NASDAQ violation? Do shareholders lose everything? or does it move to PINK list? Any hopes for the holders that they will get a portion of their money back?

[knightrader]

what happens when a stock is suddenly delisted per NASDAQ violation? Do shareholders lose everything? or does it move to PINK list? Any hopes for the holders that they will get a portion of their money back?

Understand that as stock shareholder, you will share in the success and failure of that company. I dunno what happens to a delisted company. I guess, depending on the reasons for being delisted, they can trade on an exchange that they can meet listing requirements. On bankruptcy, you get what is left of the company... if any.

With intraday trading, these concerns are immaterial being with the stock for only minutes. For longer-term timeframes, it would be nice to check some of the fundamentals even if you are only swing trading for a few days. Some professional traders I know only trade ONE stock day-in and day-out. Trading a single stock makes you intimate with the specialist on the floor and religiously know every pattern associated with that stock... meaning knowing how the specialist reacts to news or upon hitting resistance or support levels. Stocks do not move by itself. People moves stocks.

[HumanKnowledge]

$SAPX just soared to 6 cents!!!!!!!!!!!!!!!

[knightrader]

Even as the news are focused on the demise of the EU, they are missing the US problems which is worse than the European situation. Europe can still form a single sovereign nation while the US is already one. Europe can have a single central bank and treasury while the US already have one. Europe can back their currency with gold with 3 European countries in the top 5 holders of official gold reserves while the US try to hide their non-existent gold without any audit for more than 50 years. When the truth is out and Europe decides to form a single united states of Europe, the euro will take over and the new European central bank will control world markets with nations doing it willingly as a gold-backed currency provides stability and value in a new monetary system. Europe is being forced to do the "right thing". UK, being part of the Anglo-saxon manipulative control of monetary and financial systems, will NOT be a part of this coming single European sovereign union. The Phiippines will shift alliance to this coming economic juggernaut away from American influence because of our Spanish and Roman Catholic background. This new European union will partner with the Pope and Roman Catholic Church. A holy alliance. This alliance will help Philippines to muscle out China with the islands in West Philippine Sea which the impotent Americans are relegated to words and simply watch developments. Can the US really commit entanglements with its number one creditor? It seems unlikely. This will be the European century, not China.

An article on the approach the current European leaderships have taken repeatedly and still expect different results. ha-ha This current leadership will be taken out because of worsening problems. A charismatic leader will emerge partnered with the Roman Catholic Church to "wipe out" the evils in the world monetary and financial dollar-based systems.

http://brucekrasting.com/draghi-we-w...ryone-is-dead/

[knightrader]

Silver... to become more rare than gold? Hmmm As a core holding, silver is simply spectacular rising from $4 in 2001 to the current price of $28. And this is down from around $48 last year. It still have NOT broken to new high from the 1980 peak unlike gold which zoomed past its previous all-time high of around 800. Gold is currently @ $1622. Evidently, silver is the better multiplier. Gold PRESERVES wealth. Silver MULTIPLIES it! If you can handle the roller-coaster volatility because of manipulation, silver is the better choice. Of course, we have both metals. he-he

Profits flowing from precious metals and food sectors. How long will it last? Milk it as much as you can. We have not seen this for a long time. Enjoy.

Why Is the Future Silver Supply More at Risk than Gold?

http://www.financialsense.com/contri...risk-than-gold

[HumanKnowledge]

Lost $1800 this week and counting.

Sold too soon in some stocks that were doing great, and I kept the losers waiting for it to one day turn around..

I'm not logging in to my account anymore. I'll let TIME decide what will happen to what's left. Maybe some of it will have a bit of profit at the end of the year.

Only the brokerage firm is making money from all the commission they collected from me.

[knightrader]

Lost $1800 this week and counting.

Sold too soon in some stocks that were doing great, and I kept the losers waiting for it to one day turn around..

I'm not logging in to my account anymore. I'll let TIME decide what will happen to what's left. Maybe some of it will have a bit of profit at the end of the year.

Only the brokerage firm is making money from all the commission they collected from me.

Professional traders do the opposite: Cut losses quickly and let the winners run. I always say to new traders to learn how to take a loss. This ability is not natural as we feel dumb when a loss is taken but seasoned traders eat losers for lunch! We take losses like it is nothing because it is. Professional loss is SMALL. The risk reward ratio should be at the minimum !:2 meaning the target price is at least double where the stop loss is.

Beginners always assume buying and selling is done with full positions. Nothing is further from the truth. We lay n positions in part and selling is also done incrementally. First trade, we may put 1/3 or 1/2 of what we allotted for the trade (position sizing; another topic). If the trade moves our way, we add @ intraday weakness or @ breakout off consolidation. Meaning, we AVERAGE UP when adding shares.

When selling around target price or close to resistance, we sell 1/2 right away taking profits AND... this is important still have half position left in case of BREAKOUT. The game of trading (it is a game!) is probability. Play only the high probability patterns and apply tight money management as part of total trading plan and odds shift to your side.

Trading is part science and part art. The opening trade is mostly science where initial target and stop loss levels are put in. Selling is mostly art as we nibble on profits and let the profits run to exuberance. he-he

Commissions are not even a factor in professional trading platform as it is miniscule and if we provide liquidity e.g. buying on the bid and selling the ask, we actually get paid by the ECNs. It is not a fair game. Not to have a trading plan and money management put one at great risk against the pros. Trading is war. Approach it as such.