Oct 3, 2007

I did a stupid thing...

I was long DISH - that's not the stupid part - and I decided to sell all my shares at R2 (that's the stupid part). I should've partialed at R2 and I think greed got the best of me as I entered the trade and 15 minutes later I was up a nice amount (and this is early in the morning). Not wanting to give any early morning profits back, I figured I'd just sell all and if the stock jumped up a bit afterwards... I'd deal with it. Well, it 'jumped' up $4.6 from my exit. If I would've partialed... I'd be up another +9R. This isn't hingsight... partialing is what I should've done. But anyway, here's the trade (a Jaime-inspired trade):

  • Everyday, I look at Jamie's watchlist and watch for good opportunities forming at a pivot levels. DISH was a great candidate today
  • Entered long off a break of the 2nd bar high (hammer-like) right above R1
  • Price took off and my original target was R2 where I ended up selling all my shares and watched (with a tear in my eye) as price skyrocketed upwards
  • Pissed I missed the big move, I also shorted this stock off the 11:50 bar low on the 5-min chart and made some additional money which helped
  • A big thanks to Jamie for sharing his watchlist.
  • I also traded CREE for some change

21 comments:

Jerry said...

I am with you today.

Closed PNRA position a bit early. Didn't trade EFUT was I have a chance.

Jamie said...

Hey I'm happy you caught some of this. I was away this morning and missed the whole thing.

OONR7 said...

jerry: I blinked and missed a great entry on EFUT on the :15 (11:15 bar high.. inside nr7 bar on drastically decreased volume). Today had some really nice setups.

jamie: I'm sure you made some rock-solid trades. Thanks again for the watchlist.

QQQBall said...

what a monster!

QQQBall

QQQBall said...

Jerry,

i have found PNRA to be difficult to trade?

Jerry said...

QQQball,

Yes, it was difficult trade as spread was all over the place. And I was in while there were many bearish warning.

I will be very careful to use a higher timeframe next time.

Frankly, I am not proud of this trade. But I will take it.

John S. said...

Couple questions being the rookie here .

1st - I thought a "hammer" was mainly when a stock is in a downtrend and a hanging man was after a stock was in a uptrend . If you looked at the chart on DISH, I would have interpreted that as a hanging man, and would have been bearish. . Obviously I am way out in right field on this one. . . I've been reading Steve Nelson's candlestick book, and thus I'm really confused. . Hey, I traded PNRA today and did your Fib retracement trade. . It came back down around the $45.72 area (68.1%) and I pulled the trigger, rode it up to $46.50 and took profits. Almost went short this morning on LVS at $135 but didn't pull the trigger. . Crap. . chicken shit me, lol. .

Thanks, John

John S. said...

Real quickly, when I click on Jamie's link that you have embedded it doesn't show any information, just basic information on where Jamie is from, etc. but that is it?

greytrader said...

OONR7,

I think R2 was a pretty good exit. It was not obvious that it would explode up like that. With the increased volatility, you could have lost all your profits and more in a fraction of a bar. And if my math is right, you are pretty close to your 6.5R for the week and it is only Wednesday :-)

Jamie said...

John,

My blog link is http://traderjamie.blogspot.com

Interesting that the other WSW person is also named Jamie and also from Montreal. But his profile says that he's 250 years old, so he's probably lost his trading edge.

John S. said...

Thanks Jamie. yep, he probably has lost his edge. lol. .

Could I go back to my trade on PRNA? Basically, I am still trying to grasp the R on this, and I realize I won't make it as a Daytrader if I don't know what my risk/reward is. . I got in on the trade on the 10:50 candlestick at $45.72.. So what is my risk? All the way back to the first candlestick of 45 bucks? What is my reward? The high of the 2nd candlestick? If that is the case, I'm risking (45.72 - 44.92) or 82 cents risk for a potential reward (46.78 - 45.72) or roughly one buck reward? If that is the case, it would be $1.00 divided by 0.82 cents or roughly 1.2?? Don't if that is correct, but taking a shot.

Thanks for all your guys advice. .

John S. said...

By the way, NTRI will be in the radar tomorrow morning since they cut their earning outlook. Stock down 20% in afterhour trading. . I wouldn't be surprised if it tanks really low tomorrow morning with the 1st candlestick being the low of the day, sucking in some shorts and heading higher from there.. Of course, it could go completely opposite and close at the low of the day. .They are doing a buyback on their shares. Just something to watch for tomorrow. .

bl said...

NTRI...guess there off the diet for Xmas season but back on come Jan

Anonymous said...

OONR7,
i know you been doing this day trading thing. Stuff that MIT profs have already concluded to be a random pattern. But who is to bitch if you can see pattern in them. God bless you.
i know you know, 90% of day traders end of blowing their account..but some cases are even more serious than that. See this link

http://www.csbsju.edu/uspp/Research/Barton.html

Jerry said...

oonr7,

Which quote in IB do you use?

basic level 1 or NasdaqTotalView?

greytrader said...

Anon,

I love random patterns, they make me a lot of money. Sounds like some of it might have been yours :-)

OONR7 said...

john s: I can see why you're confused about the hammer/hanging man thing. You are correct in your definitions of hanging man and hammers. However, Trader X typically used narrow range, hammer-like bars (meaning up bars with small real bodies, little to no upper tail and a lower tail close to twice the width as the real body) as entry points. Again, just think about what's going with that 2nd bar in DISH. After a strong first bar near a pivot point, price during the 2nd bar tries to move down but the bulls are saying no. On top of that, volume was lower on the 2nd bar and I saw that as a recoil effect that Jamie writes about. So, if you're going long and you see a hammer (with an positive real body) during a consolidation period or at some support or resistance area... keep an eye on it.

jamie: I'm so sorry about the bad link. Duh. Only excuse was that it was late and I have a friend over who's a Phillies fan and we were watching the game as I was posting.

anon: there's always a risk of blowing up and losing all your money. I guess that's why I look at a ton of charts so that when I do enter a trade, I have the odds on my side. And really, if you don't have anything positive to say... please don't comment. I'd hate to start moderating comments but I also am growing tired of silly comments.

jerry: I believe it's level II. Definitely not totalview.

gt: lol... nice.

OONR7 said...

john S: I also had an order ready for PNRA but it wasn't hit and I canceled. Nice trade. As for your risk... I'm assuming you entered off the 10-min chart and I see the 10:50 candle with a high/low spread of .21. So, if you place your stop at the bottom of this candle (which I would) your risk is .21. My/your target would be the fib. ext. or the ORH. If it's the fib. ext... your target is ($47.46) and your potential reward would be $1.56. Now, divide that by your risk (.21) and you get an R value of 7.43 which is awesome. Almost too awesome and it might be more realistic to target the ORH which would still give you an R value of 4.05. You could always partial at the ORH and see if it runs to the fib. ext.

gt: yes... this has been a good week so far but you always want more cash for those rainy days (or the 0 for 5 days :)

Anonymous said...

oonr chimed: On top of that, volume was lower on the 2nd bar and ...

nisson has stated quite categorically that hammers/doji etc should have higher volume to have meaning. Not low volume!!

OONR7 said...

anon: love that you visit my site so you can see the trades I make. Enjoy and visit often.

QQQBall said...

anon - i think that may have been a discussion of a doji at potential CIT,ie potential pivot?