Jun 15, 2007

Salute to X

I didn't trade today partly because OPEX always makes me hesitant with my entries. However, SNDK was on my shortlist today and I was very tempted to go long off the 3rd bar high after it formed a very nice Trader-X 'bread and butter' play.

  • Intraday fibs placed from yesterday's low to today's high of the first bar
  • Priced retraced below the 38% level and the third bar formed a hammer-like candle right above this level on increased volume
  • Profit could've been taken at the fib. ext or 161.8% level

When I first started reading X's blog, he made everything look so easy. I have to admit, it took me a long time to finally 'get it'. Trading live is different from looking at a chart at the end of the day and there are a lot of factors to consider before buying a stock. However, with time, practice and a shitload of chart analysis... it all came together.

X... you will missed and thank you for everything.


Flatwallet said...

Good catch. Nice tribute.

rudy said...

When you said you did not trade today partly because "OPEX always makes me hesitant with your entries" what did you mean exactly? Thanks, Rudy

By the way enyoying your blog a lot. I know you will at least partially fill Trader X shoes, and not too long from now walk around with as much ease as he did. lol.

Prospectus said...

I agree with Rudy that you are one of the best X-Protégés out there. Please keep the trades coming.

bl said...

2 years ago I wondered how to trade the GAP and after much stumbling around I found Trader X blog and others. The mystery has not been solved but I am on my way. My greatest obstacle is narrowing down the style and set ups, and there are many ways to do that: 1)news: breifing, 24/7, mkt watch or 2)scans: premkt or open: Trade Ideas, CNN, Scottrade. BUT anyway I would do it I was overwhelmed with data and many times made no decisions or bad ones. One could probably take 4-8 stocks premkt news, or Trade Ideas greatest volitility(pts), pull up the charts, glue the eyeballs to it and wait for a set up to happen, ie, ema, candle sticks, spt/rst. The idea is for me to get out of the non productive habit of "cruising the market looking for the elusive perfect set up". I am 100% sure that a profitable setup will occure in any stock given time for in the rush to find perfection I miss the diamonds waiting just about to happen. Out of my 148 naz Watchlist >$40 10% ended the day >$2 gain. Volitility Watchlist(mostly naz: ma ice aapl fslr ffiv fcsx others from Trade Ideas) had 31% >$2 for the day. I'll go with the Volitility Watchlist and add News Stocks from 24/7 of which the following were mentioned: intc4/15, 22/15 swhc3/15 adbe short open, -1/15 nmx-2/10 hans long the open, 10/15(I traded this) 10/15. The idea here is to not be a mutual fund of gap data but to make $500-1000 per trade on a few(2-3) good trades. Sorry for the vent but had to get this out onto the net and hope other suffering traders move onto the keep it simple stupid phase. In due time, in due time. Have a good weekend and nr7, nice tribute to Trader X, a good man.

Robert said...

Why was this on your shortlist? Was it a gap scan or some other indication, like breaking out of the 45.53 resistance on the daily chart?

Also, I recall X (RIP), making a number of trades after a retracement just above the OR. Like around 11:30. Do you think this is less risky than your hammer entry?

JerryC said...

After the other blog shut down, I finally found you OONR7! I will be here be too learn. I hope you will stay around longer than other blog you mention. Great trade and will keep reading and learning here. Thanks.

OONR7 said...

@rudy: there are some wild price movements during OPEX sometimes and a price could easily spike up or down and take out your stop but continue in the direction of your trade. I was seeing a lot of that early on which put me on the defensive. I still trade during OPEX but I'm much more careful. And thanks for the kind words... I only hope to be 1/2 the trader X was.

@prospectus: that's a big compliment... thank you.

@bl: I hear ya. And I used to go crazy if X or Tom C. had a trade on their site that wasn't in my scanner and I'd spend hours upon hours altering my scan. But then, I just realized I'm not going to get every trade and I shouldn't only look for the perfect setup. What I've done recently is taken the candidates that pop up in my scanner and look at the strength or weakness of the first bar (on the :15 chart) and look for an entry based on that. So, if it was a strong first bar, I'd look for a good long entry and vice versa for shorts. This has helped to keep my list manageable and become intimate with the price movement of the stocks I'm watching.
And you hit the nail on the head... KEEP IT SIMPLE. If you can find reliable patterns with a few indicators, that is golden. Thanks for the comment as it helps me to get things out as well.

@robert: yes, it was on my gap up list (over yesterday's close) with significant volume (opex, of course). I was actually looking for a short entry at first based on the first candle in the :15 timeframe. But once I saw that third candle forming (:15) I immediately thought it might be an X bread and butter play. I haven't done a lot of them, so I just wanted to see if I was right.
And yes, I think the 9th bar presented a better entry (nice call) as it was over the OR high on increased volume with a much tighter spread. However, any time a hammer forms at a key fib. level, it definitely grabs my attention.

@jerryc: I certainly have no plans of leaving. But really, I don't have a timetable of how long I'm staying either. I love trading and enjoy blogging so long as I can continue to get good feedback from you guys. The 'other' site I mention was around for a very, very long time and contributed so much to many traders... as did Esto. I'm sure there are thousands for OONR7's out there. Thanks for your feedback.