Entry point

[Medici]

Possibly every newby's question.

ASX - when do you place a trade ?

1. Very first thing when market opens ? (and place order at market)

2. Place order the day before on closing time (closing time price)

3. You wait and see what is happening on open day (first minutes price monitoring prices)

4. you monitoring volume of shares on open day and then decide if it is worth entering ?

This based on charting the trade day before (or even earlier) and market for selection.

 

[johenmo]

All the above, plus a few more.

 

[kam75]

usually 2.

 

[Boggo]

I hardly ever place an order overnight, only time would be if I wasn't able to be around and then it is usually some stock that I am familiar with and is following an expected pattern.

I usually know my preferred entry, chase limit and stop. The advantage of watching after the open is that you can vary the buy quantity to suit your $ at risk.

If I do happen to place an overnight order then I adjust the buy volume to suit the chase limit so that my $ at risk is still intact.

Below is a chart of RFE from the open this morning. It came up in my scan last night, my entry trigger was $1.245, it opened at $1.28 at 10:06:46 and hit $1.32 at 10:13:29 so I just watched and waited, it came back down to an acceptable buy price a little while later so I jumped in. I didn't buy the total volume that I would have liked to buy at $1.245 but I will add some more when I can move my stop up a bit.

Basically, my view, if you can watch the open then do so with your order ready, if you can't then make sure you have a buy limit price and adjust your volume to that worst case entry.

Just my

(click to expand)

 

[The Owls]

Boggo
As I am thinking of entering short term trading (at present I buy for long term with good dividends as part of a SFSC) I was impressed with your chart. Would you mind advising you programme and approx cost. IF you prefer to keep this info confidential I will understand. Thank you

 

[Boggo]

Boggo
As I am thinking of entering short term trading (at present I buy for long term with good dividends as part of a SFSC) I was impressed with your chart. Would you mind advising you programme and approx cost. IF you prefer to keep this info confidential I will understand. Thank you

Hi Owls
That pic above is from WebIress broker software, the built in charting function allows you to see almost any time frame. I just look at that alongside of the depth and it can give you a picture what is going on.

If its something less volatile then I just enter as it hits my trigger target without too much looking.

Below is my Metastock daily chart and the signals that get me interested in a stock in the first place.

Cheers.

 

[The Owls]

Boggo
Thank you for this information

 

[Medici]

Boggo

Appreciate your explanation.
Any chance that you may share your scanning criteria ?
At the moment i am looking at the ASX one by one using Incredible Charts, but next week i am getting another software with some scanning ability.
I can also see that there is a learning curve in front of me.

I have to admit that i did entered stock about after 1/2 hr after opening and later on did see that if i waited another 1/2 hr i would save some money (drop down ).

So far i am using Moving Averages on 5 - 21 days and monitoring volume, but some times with penny stock there is not much volume movement.

Once again, appreciate

 

[Mr J]

if i waited another 1/2 hr i would save some money (drop down ).

I'm sure most of us could say that about most of our trades. The key is to get entries that are good at the time they were taken. If we get stopped out or there was a better entry later, so be it. We shouldn't have regrets about placing a trade.

 

[Medici]

Hello Mr J

Yes you are right. i am not disputing my entry, just the observation what happen.
The funny thing is that i did observe that the opening hrs of the exchange is bit of the chaos. About 1 hr after opening prices are settling in (as i may say that).

Today ASX on opening was going up and up, about 1 hr later it started to settling. This is also happen days before at the start of the week.

This is my lesson for the future - chart -> establish entry price -> observe market on open -> wait a while observing prices-> enter stock when i am satisfied that my selections has been OK - > accept possible further price drop (at this point possibly wishing that i wait bit longer ).

The biggest problem at the moment - scanning ASX manualy

But hope that later on with practice and gaining some experience this task become little easy

 

[Boggo]

Boggo

Appreciate your explanation.
Any chance that you may share your scanning criteria ?
At the moment i am looking at the ASX one by one using Incredible Charts, but next week i am getting another software with some scanning ability.
I can also see that there is a learning curve in front of me.

I have to admit that i did entered stock about after 1/2 hr after opening and later on did see that if i waited another 1/2 hr i would save some money (drop down ).

So far i am using Moving Averages on 5 - 21 days and monitoring volume, but some times with penny stock there is not much volume movement.

Once again, appreciate

Hi Medici
First of all I agree with Mr J, a fact of life.

Next.
I am not an expert by any stretch of the imagination but I will attempt to explain an attitude that can work for you and does work for me.

First of all lets forget the indicators just for the moment.
If I gave you 20 different chart patterns to glance at which one would you pick and why would you pick that over the rest.
Do you know what you are looking for and what works, indicators are useless (dangerous) unless you know how to use them.
You are the tradesman, they are just tools that you use to assist you in making your job easier.

Have a closer look at my chart of RFE above, what do you notice about the pattern that has worked at the first two green arrows.

Next question, how do I find a pattern that works (for you) on individual stocks in a general overall up market.

This is where you may be able to use some indicators to help find the pattern.
Lets say we place a couple of RSI's, a couple of MA's and a stochastic on the chart. Now adjust the parameters of those so that they all cross within a day or so or all on the the day of the bar that you want to have brought to your attention. In reality you are just looking for one bar but it does have to have the right "shape" and location.

In my case I never look at the indicators, I know what they are are the work that went into them but they only exist in the scan (and in a template that I can but never do open), I want to look at what they produce.

To eliminate false signals and chaff we may now need to associate some conditions with that bar, examples might be, volume on that bar is greater than the average over the last five days, the bar has a higher low and a higher high than the last bar and the close of the bar is above the mid point of the bar etc etc.
Find another similiar chart pattern, do these indicators and their settings work again.

If you find some settings that may work may now be able to build a scan from these indicators and their associated settings.

These are just suggestions but you need to have a "picture" of what you are looking for first, then find a method to locate a short list to eyeball and that I believe is how you will find want.

My Metastock scan generally only finds about a dozen "eyeball" candidates even on a strong up market day.
There are other factors that come into play such as a green arrow signal on CBA 4 days ago when it is approaching the possible end of a Wave 5 is ignored but lets not involve that aspect yet.

I have had two pints of Becks and the best part of a bottle of Coonawarra red over dinner in the local inn so I hope this all makes sense. I will probably read it tomorrow and think OMG, I should have gone to bed.

Hope this lot helps to shorten a long process.

Cheers Medici

 

[Medici]

Boggo

Appreciate very much - thank You

Hope that the red was nice....