Wednesday, February 21, 2007

Daytrading without the can be done!!!!

So again at 9:30 we are faced with butterflies in our stomach as the trading day opens...will I make money today.....can I be the cat? Will I lose money today and be the mouse? I know one thing is for sure, I am not interested in being everyones piece of cheese, I know I have some ideas for this dang "first bar trade" but I'm still working on the fine tuning to fix me......not GB and not even the PianoMon.

So this morning the first bar breakout was to the long side and it wasn't long before point "A" manage the trade. Do I take it all off, do I take some off and adjust the stop or do I just adjust the stop? Questions for sure that I need to answer for myself.

So let's look at the idea of taking some off, moving to BE for now. At point "B" is a measured pullback based on the stoch...RIGHT? So when the price moves higher the stoch should follow ...RIGHT? When the stoch gets to overbought at point "C", could I then move my stop up under the pivot at point "B"? And keep doing this until I get stopped out?

The questions today is point "D" and the reason is.....the stoch didn't reach the oversold area or below the value of 10, is that a valid spot to manage the trade or should I wait until it actually does recycle back into the oversold area a little later to adjust my stop............questions for those who like to do research and find their own holy grail.....

I can't force you and no one else should either, just plot the last 100 days and see for yourself and this process will help build confidence and also maybe....just maybe you will find your holy grail and that would be SOOOooooooo COOOL!!!!

1 comment:

Gary said...

This "First Bar Trade" strategy seems to be fairly successful. You mention that you use a double-smoothed stoch in your charts. How is this indicator set up? I have looked at the fast stoch and slow stoch settings and cannot find a double-smoothing setting. I use the TradeStation system and would use this indicator for this setup. Any help would be appreciated. Thanks.
Gary (