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| TheRumpledOne 6,529 posts msg #67260 - Ignore TheRumpledOne |
9/13/2008 2:41:50 PM Individual Psychology of a Trader http://articles.mql4.com/722 |
| chip 67 posts msg #67262 - Ignore chip |
9/13/2008 5:40:44 PM On BabyPips, this thread developed into a fantastic teaching device allowing for great dialogue between TRO and those interested in his techniques. With that in mind, I would like to try getting the same dialogue here -- for TRO's buyzone, milk-the-cows, AAPL-juicing methods. This past week I did some AAPL juicing and had my best trading week ever. Though I didn't trade the Buy Zone on Friday, it was textbook BuyZone for AAPL. 
Open was 150.91, so if I understand this correctly, one would go short at 150.81. Price never went above open so it should have been an easy stress-free ride all the way down to 147 or beyond. Personally, I was too slow so waited for a bounce. At 148 I had green candle and it looked like a bounce. The gap from Thursday's 152.5x close was still there so I went long. There was $1 to make there but I didn't take it and just let it keep falling. Around 10:45, I doubled my position at 147.10 then got out at 147.8 -- breaking even after commissions. Lots to learn there: 1) if I'd just done the buyzone I could've made > $4. 2) if I'd not been greedy on the first early entry, I could've made $1 3) if I'd not been shaken by having to double up at the proper bounce time, I could've $3 in that direction |
| TheRumpledOne 6,529 posts msg #67266 - Ignore TheRumpledOne modified |
9/13/2008 8:53:26 PM "THE BUY ZONE" (BZ) or "MILKING THE COWS" (MTC). Use a 1 minute chart for the first 15 minutes of the day. Then switch to a 5 minute chart. After the first hour, you can switch to a 15 or 30 minute chart. Things have settled down by then. The idea is to take advantage of the stock's movement from OPEN to HIGH and OPEN to LOW. ALWAYS FADE THE GAP YOUR FIRST TRADE. I usually wait for the gap to fill to consider trading the opposite direction. LONG TRIGGER IS OPEN + $.10 TO + $.20 SHORT TRIGGER IS OPEN - $.10 TO - $.20 THOSE ARE THE ONLY 2 TRADE TRIGGERS. It should be OBVIOUS TO THE READER, that if those are the only 2 triggers, the STOP IS BUILT IN!! If you can NOT see that then, DO NOT TRADE THIS METHOD!! When to take profit? WHEN YOU SEE PRICE WEAKEN IN THE DIRECTION YOU ARE TRADING. If price goes up a DOLLAR and it stops... EXIT! TAKE THE MONEY OFF THE TABLE. THIS IS SCALPING. MTC is NOT swing trading or investing. That is NOT what it is designed to do. This method always works BECAUSE... the average daily range from high to low on "cows" like AAPL and RIMM is over $1.00. The BZ is 40 cents wide. PRICE MUST LEAVE THE ZONE - IT'S THAT SIMPLE. IF YOU CAN NOT SEE THIS THEN DO NOT TRADE THIS METHOD!! If you are worried about WHIPSAWS THEN DO NOT TRADE THIS METHOD!! It's not for you. BZ or MTC trading is like playing a VIDEO GAME... There's no time to think. You know your entry ahead of time. All you do is wait for price to enter the "zone" and you pull the trigger. Your buy and sell short LIMIT ORDERS should be preloaded. You NEVER chase price, you let price come into the zone. All you have to do is look at any intraday chart with the open plotted and you should be able to see HOW AND WHY THIS WORKS. IF YOU CAN NOT SEE THIS THEN DO NOT TRADE THIS METHOD!! AAPL and RIMM are my favorite "cows". Use the FADE THE GAP STATISTICS filter to find other cows if you don't like to trade AAPL or RIMM. Stay away from GOOG and BIDU, those 2 stocks are too erratic for this method. Chip, how's that AAPL juice taste? |
| chetron 2,817 posts msg #67273 - Ignore chetron modified |
9/14/2008 7:54:44 AM if i unerstand TRO, then the only play for AAPL, was to use the "TRO STAT SCAN - TRAVEL GUIDE" play. shorting as you did chip, covering at the avgdrop20, 147.55, 3.36, and go long for the bounce at 147.55 and sell at the avgbounce20, 149.65, 2.10, and be done for the day. |
| chip 67 posts msg #67274 - Ignore chip |
9/14/2008 9:07:55 AM TRO, AAPL juice was tasty all week :) -- good way to start the day. Am I correct in understanding that this method would have had me _not_ trading AAPL on Friday? You say: ALWAYS FADE THE GAP YOUR FIRST TRADE On the Friday chart, there was a huge gap down, so my first trade should have been a long at +0.10 - +0.20. Since price never went above open, no trade? |
| chetron 2,817 posts msg #67275 - Ignore chetron modified |
9/14/2008 11:22:29 AM yes chip, but you don't short a gap down, as you did, for a fade. you did a cow milker instead because aapl was red, which should have been a TRO STAT SCAN - TRAVEL GUIDE play because the volitility was not there for the gap fade, hence not enough volitility for a cow milker. go for the TRO STAT SCAN - TRAVEL GUIDE swing trade on low volitility days. |
| chip 67 posts msg #67277 - Ignore chip |
9/14/2008 2:41:50 PM chetron, can you do that slower, in english? :) |
| miketranz 978 posts msg #67280 - Ignore miketranz |
9/14/2008 8:30:04 PM Avery,pull up GM on a 1 min chart.Textbook reversal off open.Where would you enter long? Or would you be long on this trade? If so,what method are you using? Thanks,Mike..... |
| chetron 2,817 posts msg #67282 - Ignore chetron modified |
9/14/2008 9:51:02 PM ********************** chip - Ignore chip 9/14/2008 2:41:50 PM chetron, can you do that slower, in english? :) ******************************* sorry chip, lol, i do tend to ramble. friday, aapl gapped down aapl then went red, never breaking the +0.10 cent mark to go long for a fade the gap play. you said that you shorted it, once it broke the -0.10 cent buyzone, which i understand as MTC play. tro says milk the cow plays come after a fade the gap play, because, for 1, the equity has Volatility, if it does fade the gap. and this is good for the milk the cow play. if the gap is not closed, the equity lacks the Volatility to continue on with milk the cow(buyzone) plays. so the next play to go to is the TRO STAT SCAN - TRAVEL GUIDE play for your short which works a slower swing type play. by running the travel pocket guide for aapl on thursday. you would have the entry and exit price for aapl ready for this type of slower day, and the more conservative average20 drop, bounce targets were right on for friday. hope this helps. i will continue to better my communication skills in the future. : ) |
| TheRumpledOne 6,529 posts msg #67284 - Ignore TheRumpledOne |
9/14/2008 11:19:53 PM 9/14/2008 11:19:19 PM chetron if i unerstand TRO, then the only play for AAPL, was to use the "RFR" play. shorting as you did chip, covering at the avgdrop20, 147.55, 3.36, and go long for the bounce at 147.55 and sell at the avgbounce20, 149.65, 2.10, and be done for the day. ========================================================================= NO!!!!!!!!!!!!!!!!!! AAPL is a "COW". AAPL is NOT an RFR stock!! The "only" trade for AAPL is to go long in the long zone from OPEN + $.10 to OPEN + $.20 and to go short in the short zone from OPEN - $.10 to OPEN - $.20. THERE IS NO OTHER "MILK THE COW" OR "BUY ZONE" trade. This is why MTC works. MTC is SIMPLE. AAPL is NOT an RFR stock and should NOT be traded with that method. "IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT". Perhaps, now you'll understand why I say that. |
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