(Sep 26-08:47) johnnyvento: SIL way up... may be green day
(Sep 26-09:04) johnnyvento: SIL might be a good reshort off the spike up
(Sep 26-09:04) johnnyvento: will have to see
Why am I telling you all this? Because once SIL settled down it was clear which was it was heading, and I jumped right in.
Here is the chart:
Classic Muddy style is to go in on break of $3. This was a good play but it broke so fast then retraced that I wasn't sure it wouldn't start to run. After seeing how FRE got dusted on DC rumors I flinched that any kind of bailout news (bad) could send stocks like these soaring. Letting it settle out made me more confident that SIL would still be a good short for at least another day. With more confidence I jump in with 1 1/2 positions to make up for the lower range I am getting so it works out. Plus I don't have to survive the heart attack of being on the wrong side of the trade. The point I am making is, if you are not sure of the trade, don't get in. Works for me. Could it work for you as well?
Also caught RDN early off the huge spike.
(Sep 26-09:50) johnnyvento: RDN huge bounce
I'm not bragging, everyone in the chat watches RDN. I'm just saying to Avery Horton Jr. that it is useful to call them in the chat before they run up instead of after.
**UPDATE
By coincidence, Timothy Sykes has an almost identical post up tonight, although he doesn't really address the question of the entry, which is the most difficult aspect and what the letter writer asked for help on. Although this trade on SIL is on a different day, the thinking is the same as my first entry at 3.89.
Posts
6 comments:
my question is if you short at 2.95
(and stop loss (lets say 5% and trailing stop is 3%)) it would be taken out when it bounced back from 2.5 to 2.94.
how would you deal with this situation from taking you out of a profitable trade like this one?
ps: good entry on sil
thanks for helping a newbie
if you shorted early chances are you would have gotten stopped out on the bounce back up. To answer your question I never put in hard stops but that is not a bad idea, it's better to miss a good trade than to lose all your capital, like sykes says survive to trade another day
I'm not bragging, everyone in the chat watches RDN. I'm just saying to Avery Horton Jr. that it is useful to call them in the chat before they run up instead of after.
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What's your point?
Sometimes I do give heads up calls.
If "everyone" is watching RDN, then I don't need to.
thanks jhonnyvento
Nice post, jv.
I remember looking back at the SIL chart, and I think the 10/60 cross on 1-minute windows would've been a good entry. You would've caught it post-Tim-Alert, because it actually bounced back up after he sent his alert, but still caught it just as it started to fall back below $4 for a second time.
The link in your post to Horton is a sales page selling his trapline day trading method for $500!
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