these are the picks from zetazeta
inspired by impristine
Message 17514267
this thread is purposely listed under casinos/gaming because Wall Street is nothing but a big casino, the Specialist/Market Maker is the House, it is their job to create liquidty for the market, but make no mistake about it, their job is to transfer ownership of capital, making your money theirs ...
so we are dealing with professionals whose job is to take your money, and in order to survive, we need discipline, discipline, discipline, don't let emotion get into our way, we need to swing at the pitches that are right down the middle of the plate, lay off the borderline pitches ...
this is not a daytrading thread, I think we better get good in position trading before we venture into daytrading, we are in no hurry to lose more money than we have to ...
there are 5 basic things we need to consider for a trade
when opening a position
1) which stock to trade
2) how much to bet on
3) entry price
when exiting a position
4) exit price if it goes poorly
5) exit price if it goes well
to avoid using human judgement, or in other words, trying to be as objective as possible, I will be using indicators that can be found in
prophetfinance.com
it has the most selection of indicators of all charting services, it is $19.95 for real time data, and free for delayed
and since I am not daytrading on this thread, the free delayed charts are suffice ...
1) which stock to trade
at this time, I am planning to follow only the 'high volume stocks' from Yahoo stock screener
screen.yahoo.com
WCOM, SUNW, CSCO, INTC, ORCL,
LU, MSFT, GE, JDSU, AOL,
AMAT, TYC, DELL, EMC, NXTL,
JNPR, BRCD, SEBL, ERICY, QCOM,
AWE, NT, HPQ, T, BRCM,
PFE, C, VRTS, PALM, KLAC,
CPN, NOK, NVDA, Q, FLEX,
BEAS, PCS, BMY, CIEN, AMGN,
EMLX, XOM, QLGC, QQQ
and with the intense interest of precious metal lately
ABX, DROOY, HGMCY, NEM, PDG
2) how much to bet on
we are entering the area of money management, since we can not fortell which trade will come out better than the others, the only logical way is to bet the same percentage on each trade, I personally think 5% will offer us enough cushion just in case we hit a nasty losing streak ...
3) entry price
4) exit price if it goes poorly
5) exit price if it goes well
as to 3/4/5, it is totally dictated by the technical indicators we follow, which would be explain later
in general, there are 2 ways to trade, namely, trend following and counter trend
In trend following, you try to enter when a rising trend is evident and exit when a falling trend develops; in counter trend, you try to enter at the bottom and exit at the top ...
I will continue with my thoughts over the weekend ... |
