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Strategies & Market Trends : Let's Talk Technical Analyisis (TA) -- Ignore unavailable to you. Want to Upgrade?

To: D. Chapman who wrote (125)	1/27/2002 11:47:20 AM
From: Chris	Read Replies (1) \| Respond to of 178

I've included one of my "Trading worksheets" of an actual trade I did for my girlfriend. Look around Early december of 2001. geocities.com Let me show you each part of the chart. 1) I perform daily scans with metastock. And as you can see the scan looks for bullish signal. The ribbon at top shows the change from bearish to bullish. This coincided with a downtrendline break from the october highs. 2) Once I got my signal and did an eyeball on the chart, I proceeded to step 2, which was to check for any earnings news or upcoming earnings date. 3) I then proceed to position size and do the trade plan. I've labeled "E" as my ideal entry, "S" as my sell stop, and "TGT" as my tgt price for this move. I plug into my position sizing spreadsheet with a requirement of around -$200 loss if stopped out (with commission included). The size of trade came back as 425 shares ($9,875 trade cost). If my tgt gets hit, my profit will be $416. 4) I double check the R/R ratio, with a minimum of 2.00. If too low, then it either means I have to adjust the entry and stop OR the trade itself is not worth it. As long as the trade is worthwhile, and my entry does not get hit, then I move up my entry price (perform the position size again) -------------- Results: SO proceeded to break above my projected tgt and went to test the highs. I was finally stopped out with my trailing stop (circled) ------ It should be noted that I use a proprietary technique to determine my ideal entry and intial sell stop point. Hope this is useful... Remember, not only one way to position size.. Feel free to comment. The learning process continues. goal: More mechanical, less emotions, less stress. Not a rec to buy or sell Pertains to girlfriend's account Past results not indicative of future performance.