Apr 24, 2008

HOT - Long

HOT was one of those on-the-fence entries that I wasn't sure about taking because there wasn't a whole lot of room between entry and the fib. ext. I entered anyway and was happy to bank the coin it was willing to give me.
Entered long off the 11:45 candle high and exited right below the fib. ext. Quick, orderly and profitable... just like I like 'em. I liked the build up to the ORH, the rest during the 11:30 candle and then the decisive move by the entry candle (I wish it was more narrow). Hope you all did well.


TraderAm said...

Nice Trade.

I couldn't find anything today.

Just out of interest when did you add HOT to your WL ? I saw it too late.

OONR7 said...

traderam: thanks. Not sure if HOT was in my IB scan or prophet, but it was from one of the two and I run the latest scan (prophet) at 9:45. I had it in my watchlist from the get go with that strong first bar.

bl said...

Moody's cuts SOV today, Finch or SP cut TSFG yesterday. Nice gimme short

Trader a said...

hi 00

this specific trade isn't to my taste cause it doesn't give a good r\r ratio, but thats not what i want to talk about:

your blog is at the top of my favorites list and the first i visit at the end of each day, i think that you have a very healthy approach to daytrading, and i combined some of your principles in my trading style, mainly the reading of price action and awareness to OR. I want to thank you again for sharing and i know it benefits you alot as well.
i have some questions and remarks

1. my last comment about cec: the second entry was on the 15th and not the 5th.

2. you said that the first entry bar (4th) was too far from the EMA5 - but since we trade gappers, the ma rarely gets near the first 4-6 bars (because price of the previous day is still taken in account when calculating this ma). just wanted to point out that fact.

3.i saw your comment at Eyal's blog - about sharing the mechanics of his trading and i here's my main question:
do you think that your system's edge can be eroded (like the turtles for example), and don't you think that sharing it will contribute to that process? i know its not of MY best interest to get you thinking about it, but i guess you already thought of it and i'm quite intrigued.
two facts though:
1- we rarely trade the same stocks, and i've been following your for 5 months.
2-asymmetry of information: googleling "day trading" will get you lots of links to the payed-trading-education-industry-of-charlatans (pretty worthless&expensive of course) then about 50 links down you get trader mike's blog. I'm sure that over 95% of people interested in dt, never get to the "real" quality resources.

sorry for the long comment and thanks again.


OONR7 said...

trader a:

1 - regarding CEC, I wouldn't have entered off the 15th because it was the 4th consecutive up bar in a row. IMO, not a high probability trade... good chance it will want to rest after so many continuous up moves.

2 - I disagree with your 5ema comment. There are plenty of trades where a good entry bar is very close, if not touching, the 5ema. Just look at my archive of :15 trades. There are traders out there that don't even look at the 5ema and do well but for the way I trade it has been my experience that price will ultimately gravitate to the 5ema. So, if you're going long on a stock and the price is a good distance from the 5ema... don't be surprised if price consolidates or retraces back to the 5ema. But if you're doing well with trades not too close to the 5eme... then you should keep doing what you do.

3 - do I think my edge can be eroded? I suppose if I drew thousands upon thousands of readers and they all executed the same exact trades that I did. But I doubt it. I mean, I make mistakes too, sometimes often, and I really have to be aware of my stocks... scanning all the time to get into them. I have often said that I look for the perfect trading day where I execute every trade that presents itself and exit exactly where I want to exit. That has not happened yet (came close a couple weeks ago).
Apparently Eyal thinks differently. However, I didn't like his assumption that I don't share my entries and exits. Hell... I've provided more information in this comment to you than he has all year.
Emulating another trader is such a difficult thing to do as we all have our own routines and ways of interpreting charts. I wasn't asking Eyal for super detailed info, just some analysis or charts... hell, even symbols would be good - so that I can also take a look at the charts and see if I can make sense of his entries as well.
I mean, if you have a blog about trading and don't really post any substantive information about your trades... why even talk about trading anyway???
He has every right not to talk about his trades, as he's doing now, but I figured I'd ask anyway.
Maybe I should just close up shop too since the purpose of my blog was that of a journal and a helpful guide to new traders.
Maybe I should be less helpful and then I'll have some more 'best days' just like Eyal.

I appreciate your comment and, frankly, I'm glad you saw Eyal's post. I couldn't agree more with your two facts.

The thing that also gets me is that Eyal also moderated that post. Guess he wants to review my response first (maybe delete it). If so, I'll just post here for you all. I moderate comments... but not selectively and only because of dipshit anon posters.
Might I also be considered a dipshit anon poster??? Oh no :)

Thanks Trader A for letting me vent.

OONR7 said...

trader a: couple more things about the 5ema. I trade different timeframes as well so I'm bound to get an entry that's right at the 5ema on those timeframes. And, if price isn't close enough to the 5ema... I wait. Sometimes it's not the right decision, but oftentimes if price can find support at the 5ema than I can look for an entry there.

trader A said...

thanks for your answers

Eyal's blog is also at the top of my favorites, and sure, i would have wanted so see some more trading details - but it's HIS blog, and i think he does have very good content in it regarding trading. I guess that if he moderated this post he had some good reason to do it.

sure - some charts would be nice, but neither you, Eyal, X(no.1!) and all other good bloggers out there owe us readers nothing - so i'm just grateful for any peace of information/education you guys post.

oh, about the erosion:
i believe that your sys. is very resistant to that:

1- most are trades with high relative volume
2- its mainly based on logic- price action - not an array of rules or elaborated formulas (like the eroded turtles, other mechanical systems)


OONR7 said...

trader a: look at you being all politically correct :)

You know, I guess my initial comment to him came out of frustration in the fact that I do share a lot of info regarding my entries and exits and any other info folks comment or email me about.

So, my question to him simply asked for symbols and maybe some analysis. I honestly don't think that too much to ask. Call me freaking crazy.

Anyway, I know I don't owe you and any other reader anything. Frankly, I could shut the blog down tomorrow and feel just fine with it. However, what kinda irked me with Eyal's response was that he insinuated that I didn't provide the kind of information I was asking him to provide.

Again... we shouldn't even be talking further about this, really not a big deal. It is his blog and he can respond however he wants. That doesn't mean I can't respond in kind.

Eyal seems like a good guy and maybe he correct in withholding info regarding his trades. My interest in his strategy stems from the fact that we both trade gappers and I was interested in his approach and stocks he traded... that's all. There's always room to learn more.

greytrader said...

What goes around, comes around... If you share with others, they will share with you :-)

OONR7 said...

gt: yes indeed, my friend, yes indeed :)

TraderAm said...

A few traders I know have said to me that I shouldn't post the amount of detail that I currently do. But the idea is that other traders read your blog and may offer some constructive advice or another viewpoint on your trades. This can only be a good thing, I reckon.

In terms of losing your edge, blogs from Maxion and TraderX had thousands of readers didn't they?Yet their patterns and strategies work as well now as they did then.

Just my 2c :-)

OONR7 said...

traderam: I believe you're right regarding how many folks have emulated Maoxian and Trader X's system and yet they still work. Again, I just think there are so many stocks out there to apply these methods and I think it would be hard to simply lose your edge by sharing information.
Sharing info has definitely helped me. But I may think twice next time I have a losing day :)