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May, 2015

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COSTCO SNIPE HAPPENING

Last night one of our small and developing team spotted COSTCO as a possible snipe. Earnings releases were on the NASDAQ (unfortunately not showing on Tradingview). Having assessed it we entered long. The trade is still running and it’s looking good. My stop-loss has been moved to zero-loss position – so I can’t lose!! Learning point: The Earnings Release strategy has a fair chance of success if applied well. Of course, I have to sayRead More

TIFFANY and LANNETT in the scope

Tiffany is at an interesting position. The gurus hold mixed views on whether Tiffany will rise or fall. Of course, listening too much to gurus is not part of this business. It’s about acceptable loss and risk management. [Updated: see out come on Tiffany below, after this was posted.] Price on Tiffany has been moving up and down but overall sideways in the last few days. It’s definitely down today before the earnings release ofRead More

Profit from panic?

The chart below is most interesting and amusing. Clearly a bunch of people thought that this stock was gonna collapse so they put in orders to sell at the earnings release. They got it wrong. Read on. The one hour chart shows the madness better. But why did price decide to rise at the bottom of that big green candle? The 4h chart tells why. Remember this stuff is happening in America (mostly) – whereRead More

Stalking COSTAR – again

The chart below shows a very observable pattern to COSTAR. It is doubtless a channel. The first thing that will come to mind is that, “It’s purely by chance.. there’s no reason why this is happening”. We may not be able to see the reason, but the pattern is undeniable. Amazingly this does not only happen with COSTAR or any one group of equities. From experience it happens in loads of equities, forex and otherRead More

What’s a good stop-loss?

It’s a question that’s impossible to answer as it depends on several things – and each trade is different, as many things affect a particular instrument you’re trading. [An instrument is a stock (aka equity), commodity, forex, or whatever]. The really big and most important point of a stop-loss is to limit losses and limit risk. Being stopped-out and price fluctuaton: One of the biggest mistakes new traders make – and I still get thisRead More

Updated strategy for earnings releases

This strategy updates that of February 2015. The important change is about assessing whether an equity responds to the DAX (GER30) or Wall Street (US30). This became important from lessons learned with Mallinkrodt in Respect the Indices. The SYP principle applies as always. Another change is looking at the Williams Vix Fix – this is an indictor available to Tradingview chart users. It gives a fairly good alert about when price is about to moveRead More

Tools – not fools!

The tools referred to here are ‘physical’ things – as against ‘psychological’. This is about some of the stuff that could be of use in learning or live trading. The quality of your tools matters much to the quality of your learning. And of course it goes without much saying that if you don’t invest time in using the tools they will do nothing for you. There are some new traders who will go, ‘IRead More

Rethinking indicators

Many an expert trader will say something like ‘I rely mostly on price action, not indicators. Most indicators are useless and confusing.’ – which automatically brings up the question, “Which indicators are useful?”. But there are deeper issues. What is ‘price action’? Investopedia says, “Quite literally, price action is everything that a security’s price does, and just like every other facet of analysis, it is purely subjective.” Expert traders may well disagree by saying thatRead More