www.guerillastocktrading.com Possibly the most well-liked intraday trading method practiced by professional stock traders is the Opening Range Break...
www.guerillastocktrading.com Possibly the most well-liked intraday trading method practiced by professional stock traders is the Opening Range Breakout. Ever since its beginning, the Opening Range Breakout has mutated into a number of different strategies. We are going to define our Opening Range as the initial 30 minutes of stock trading. At the thirty minute mark, we will draw a line on our stock chart or make a yellow sticky of the highest price and lowest price during this 30 minutes. Therefore the essential basis of defining the Opening Range is that your predisposition for trading the underlying stock will be determined by where the stock is trading in relation to the Opening Range. As long as the stock or market trades within the Opening Range, it is trend neutral and does not furnish either a buy or sell signal. If the stock breaks above the high of the Opening Range don’t do anything yet. You must have a close above this range on a 5 minute chart. Provided you see a 5 minute candle breaking above the Opening Range, the next signal you need is confirmation. You need one more 5 minute bar closing above the range to confirm the breakout. Provided the stock drops below the low of the Opening Range, do not do anything. You need a 5 minute candle breaking below and you must have an added candlestick for confirmation just like a break above. The stock trading above its opening range has a bullish bias, and a stock trading below its opening range has a bearish bias …
www.guerillastocktrading.com There is a stigma on the subject of being in the wrong in technical analyst circles. This shame is so rampant that it leads celebrated technical analysts like Arthur Hill, thought of by many to be the grand daddy of contemporary technical analysis and inter-market relationships, to say he is a commentator only and will not offer real buy or sell recommendations. Come again! Provided you believe in what you advocate, why not present buy and sell recommendations for no other explanation than to prove you can make money with technical analysis! That is something that I will always look down on John Murphy and Arthur Hill about. I say put your money where your boasting is and stop hiding behind this terror of being incorrect and coming up with some dumb excuse that you are a market reporter only. That is a big cop out. However worse than chickening out is to re-trace your trend channel lines and hope no one will become aware of the place you had it beforehand. That is technical analysis deceit and something I myself witnessed 5 other stock technical analysts do over the previous couple of weeks. No one is ever not to be faulted in their technical analysis. Everybody gets it incorrect. Thus if getting it wrong from time to time is a crucial part of what it means to stock trade then why are so many technical analysts terrified to admit when they get it wrong? Why do the bulk of technical analysts act like they are neutral market commentators for …
www.guerillastocktrading.com I have been receiving emails from subscribers asking me to give my thoughts on SPY and if I’m still short this market. No doubt this is a tough market to earn money in whilst we have the kind of sideways trading we have had this week. But the last thing you want me to do is to take some type of balancing on both sides of the fence tactic like John Murphy or Arthur Hill have. You would like me to give you my belief of the stock market and how I am playing it right now, not a spectacle about how I don’t give buy and sell recommendations and rather only comment on the technicals. I declare if you are incapable of forming specific buy and sell thoughts based on your technical analysis, then what good is your technical analysis? The only logic for why we do technical analysis is to make money. If you are not making money with your technical analysis then it is rubbish to you, you might as well throw what you are doing in the garbage. The Russell 2000 and the Nasdaq are leading the S&P 500 and the Dow down. This is a bearish sign for the wall street. The S&P 500 is in a downtrend. It has strengthen from the strong downtrend we had a few days ago. Does this indicate our shorts are in danger? No. It is still a downtrend. Not as strong a downtrend as we like, but all the same a downtrend. I am holding my short position on Consumer Services (SCC). SCC is in a very weak uptrend. The same logic applies to specific stocks as it does the key indices. It’s …
www.guerillastocktrading.com Your search on information on the subject of avoiding losses in trading says to me that your brain is in the correct place. A large amount of rookie investors concentrate on materialism or in other words the reverse of risk aversion. Amateur investors think how much money they might make if only, and not about how they can lessen stock trading losses. Can you avoid losses in stock trading? Nix that idea. My own 10 year accuracy fluctuates between 70% and 80%. Hence, 20% to 30% of my stock trades result in losses. However, there are steps you can take to reduce losses in trading. 1 – Don’t attempt to get back your losses. The worst action you can do subsequent to a loss in stock trading is to come to a decision that on your next trade you are going to make back the loss. Many amateur stock traders will put on a riskier trade in a small cap or any stock they believe can appreciate in value even more than their first losing trade with the idea that they will make back the money they lost. Do not do this. Putting on a riskier trade means you just improved your chances of having a second losing trade. Do not get gluttonous and lose all feeling of fear because of a loss. Instead look at your stock trading method. Did you stick with your stop loss plan? Did you rationalize and give reason for why you were still holding the losing stock even while your initial profit thesis was broken? Make all adjustments you need to your stock trading system then …
www.guerillastocktrading.com Caution! Some traders will find this episode is very impolite. Every now and then the only technique to train a big cheese is to offend them and hurt their feelings. Break them down from their overconfident, I already know it all dais. You have been warned. I’m nauseous and weary of reading every one of these performance news stories with reference to how awful the stock market is and all the wealth that has been lost over the last few weeks in the stock market. Pardon? I’ve increased my capital on the short sell side. The only question I have for you is why aren’t you? We know the reason why. If you are not making money on the short side of this stock market it’s for the reason that you are lame. You are brainless. Just take a deep breath and disclose to yourself that you are in fact half the investor you thought you were. The reason why half? Consider a quarter. It has two sides heads and tails. Provided you take away one of the sides, it is no longer a quarter. By way of definition a quarter has two sides. Now think of your trading style. Provided you aren’t ready to go both long and short as technical analysis and market trends dictate, then by definition you are not a trader for the reason that a trader is able to do both. I do not wish to take notice of any excuses either like, I don’t have a margin trading account so I can not take the short side. Pay attention you dummy. There are many bear market ETFs out there that you can purchase …