| StockFetcher Forums · General Discussion · NEVER LOSE AGAIN!! | << 1 2 3 4 5 ... 105 >>Post Follow-up |
| 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. |
| TheRumpledOne 6,529 posts msg #67285 - Ignore TheRumpledOne |
9/14/2008 11:21:41 PM miketranz 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..... ============================================================================== I don't trade GM. I only MTC with NASDAQ stocks. |
| TheRumpledOne 6,529 posts msg #67286 - Ignore TheRumpledOne |
9/14/2008 11:24:36 PM Yes, the RULE OF THUMB is to FADE THE GAP for the first trade. That is the safest way to trade. HOWEVER, if there is a reason to believe the stock may continue in the direction of the gap, you can use the BUY ZONE for your entry. There are usually a lot of head fakes and you can get killed in a blink of an eye. As you trade ONE STOCK, you gain insight into its trading pattern. Remember, PRICE MUST CROSS THROUGH ONE OF THE ZONES... there is no choice. |
| StockFetcher Forums · General Discussion · NEVER LOSE AGAIN!! | << 1 2 3 4 5 ... 105 >>Post Follow-up |
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