Jan 3, 2008

Beer, steak and trading

So, we're preparing for a weekend trip to see friends and needed to go out and get some last minute gifts. I figured we'd also grab dinner along the way. So, when SPN came along and presented a good opportunity (11:45 bar)... I couldn't resist. I entered long and price immediately went my way and kept me out of the red. I placed my stop like I always do, but since I was leaving, I figured I'd also place a sell-limit order right below the 119% fib. ext.

Anyway, as I was drinking my beer and entrecote... I kept thinking about what the hell was going on with the trade. The entire time I was thinking of how nice it would be to place an order right before I leave, enjoy a nice dinner with the family, come back and... viola - make 5R. Well, to my wonderful surprise, that happened.

Now, I do have a favor for you IB users out there. I believe Hammer Trader mentioned that he uses Cancel orders. Meaning, if you have a sell-limit and a sell-stop order on the same trade and one triggers the other order is immediately canceled. I have no clue how to do that and would appreciate anyone's help.

Also, as mentioned earlier, I'll be away for the weekend so there won't be any new posts till Sunday evening at the earliest. Have a great weekend.

9 comments:

Jerry said...

We both have the same trade. Hope you got more than I do.

OONR7 said...

oh no... I hope you got more than me!!!!

Dave said...

Lol... I entered the same trade.. but got out a bit early at 4R :( ... I posted a bit about the 10 ema and price weighted moving average on your last blog entry

Still have to work on my exits a bit more and letting my stops do the work

OONR7 said...

dave: just checked out your chart. Very interesting and thanks for the explanation. So, using today's trade as an example, you still primarily use the 5ema as support and look for the 10ema and price weighted moving average to 'line up' if you will? The closer all of these three are to the entry point... the better, correct? Now, once price breaks below these three, do you find there are oftentimes good short setups (or countergap trades)?

Hammer Trader said...

OO:
For your OCA question, here is the link on IB for how to create an OCA order:

http://www.interactivebrokers.com/php/webhelp/webhelp.htm#Making_Trades/Create_Order_Types/oca.htm

I guess their online help is out-dated, because I don't see the same on my TWS, but the basic steps are the same, you enable that Group option in Layout page, and then you can put a number for 2 orders, then they will be in the same group.

Let me know if you have any problem with it, I can upload some screenshot.

OONR7 said...

hammer: thanks for your help. I was able to identify OCA in my features section of TWS and activate it. According to the link you sent, I just need to label the orders as I enter so it can identify which to kill once one order is executed, correct?

Dave said...

007:

Yea, I'll still use the same criteria to enter a trade. I look for a bullish candle close above or near the 5 ema and then a break of that candle on increasing volume. But often a stock won't follow the 5 ema or 10 ema before providing a setup, or setting up again.

I basically use the 10-ema and the price weighted moving average to gage the support once the stock is trading below the 5 ema. If the stock crosses below both of them, I just look for other setups.

BTW, my price weighted moving average is calculated out over 1 entire trading day.

I'm sure there is a potential short setup once it breaks through, but I'd rather focus on weaker stocks to short, as opposed to strong stocks that are just 'tired' or 'extended' for the day and are bouncing back.

I'll see if I can dig through some better examples this weekend.

Formerly ADD Trader said...

I had the same trade, but both you and Jerry got more than me.

Formerly ADD Trader

Hammer Trader said...

OO:
That's correct, you can give a try on paper account or just attach a basket order and you will see the 2 orders created by TWS automatically will have same Group number.