Example of my conservative trading strategy

[brty]

Wysiwyg,

I'm fairly sure you stated somewhere that you don't catch falling knives! WPL is a falling knife that you bought. Wondering why you did this? Thanks.

Your right, I did. Perhaps I should explain. A falling knife starts from a stationary position and accelerates according to the laws of physics. Something that is decelerating as it falls is hardly a falling knife.

I will probably have another go at WPL at ~$40, if it gets there by say next Friday (or later) by meandering there. If it gets there on Monday, I wont touch it because of the downward velocity, hence a falling knife.

brty

 

[lukeaye]

Wysiwyg,

I will probably have another go at WPL at ~$40, if it gets there by say next Friday (or later) by meandering there. If it gets there on Monday, I wont touch it because of the downward velocity, hence a falling knife.

brty

When you say you will buy it if it is meandering there, i thought you stated you would only buy on a sharp bounce? If support was well established? Surely if you wont catch smething with downward velocity, you would only enter long if there was upward velocity?

This is what i mean, what measurebale technqiue are you using?

 

[nomore4s]

When you say you will buy it if it is meandering there, i thought you stated you would only buy on a sharp bounce? If support was well established? Surely if you wont catch smething with downward velocity, you would only enter long if there was upward velocity?

This is what i mean, what measurebale technqiue are you using?

lukeaye have you started looking into Wyckoff yet? Because some of this is answered in Wyckoff.

Here are a couple of links for you.
http://wyckoffstockmarketinstitute.com/corner.htm

And the Wyckoff thread on this forum
https://www.aussiestockforums.com/forums/showthread.php?t=10020&highlight=wyckoff

The problem I see with your analysis atm is it is very one sided, you probably need to understand the "character" of the stock/pattern a bit more. You are solely focused on the "support" areas because you are looking to confirm your bias to give you a reason to take a trade, but you are ignoring everything else - need to understand the bigger picture a bit more.

 

[lukeaye]

lukeaye have you started looking into Wyckoff yet? Because some of this is answered in Wyckoff.

Here are a couple of links for you.
http://wyckoffstockmarketinstitute.com/corner.htm

And the Wyckoff thread on this forum
https://www.aussiestockforums.com/forums/showthread.php?t=10020&highlight=wyckoff

The problem I see with your analysis atm is it is very one sided, you probably need to understand the "character" of the stock/pattern a bit more. You are solely focused on the "support" areas because you are looking to confirm your bias to give you a reason to take a trade, but you are ignoring everything else - need to understand the bigger picture a bit more.

No i havent, im having trouble finding any of his books. I would really love to get a hold of them.

 

[brty]

Lukeaye,

i thought you stated you would only buy on a sharp bounce?

I buy FOR the sharp bounce, I don't think I have ever stated the above, though if I have had a couple of reds who knows what drivel spouts forth.

brty

 

[nomore4s]

No i havent, im having trouble finding any of his books. I would really love to get a hold of them.

lol, mate there isn't really any books, there is a course but I wouldn't recommend you do that at this stage as there is plenty of free info available - it's just hard to find.

The links I've given you contain a wealth of info on it. The other great source on Wyckoff is Motorway, maybe PM him and see if he can give you any more info.

 

[lukeaye]

Has anyone else noticed, that IG markets charts are completely wrong?

Im in SGM at the moment, entered 2 days ago, and its telling me yesterday went up by 5.20%? Same thing for crown, its telling me that it has dropped today, which is completely wrong. Ive noticed it on alot of charts.

Which is quite scary, because my analysis is based on these charts.

 

[lukeaye]

Then imagine my shock when i take another look at the price being up 5.20% then this.

 

[So_Cynical]

I'm using discretionary methods, as i simply don't have time or the desire to learn computer language for systems trading.

So here is a trade i took on thursday, David Jones.

Entry; $5.06

Hi lukeaye i reckon you will do all-right with those entry's given time and a little room to move for the stops.

Keeping in mind i don't follow WOR or DJS

Noticed JDS got to 5.09 today..what 7 weeks later, now imagine if you had brought a few more after the SP had fallen 5% instead of taking the loss and selling.?

 

[lukeaye]

Noticed JDS got to 5.09 today..what 7 weeks later, now imagine if you had brought a few more after the SP had fallen 5% instead of taking the loss and selling.?

Hi cynical,

Its not part of my plan though, averaging down with cfd's its quite possibly the most dangerous thing you can do. Buying the pyhsical stock might be ok, but with the leverage i have, i cant do it.

I exited without loss anyway. And have used capital for other sucesful trades

 

[So_Cynical]

Hi cynical,

Its not part of my plan though, averaging down with cfd's its quite possibly the most dangerous thing you can do. Buying the pyhsical stock might be ok, but with the leverage i have, i cant do it.

I exited without loss anyway. And have used capital for other successful trades

OK yes CFD's = very dangerous.

 

[tech/a]

Hi cynical,

Its not part of my plan though, averaging down with cfd's its quite possibly the most dangerous thing you can do. Buying the pyhsical stock might be ok, but with the leverage i have, i cant do it.

I exited without loss anyway. And have used capital for other sucesful trades

Quite possibly you may need to learn how to trade on margin(Leverage)without risking your shirt.
There is a proper way you know.

 

[lukeaye]

Quite possibly you may need to learn how to trade on margin(Leverage)without risking your shirt.
There is a proper way you know.

Well yes i realise there are ways.

For example i can pyramid into the position. Buy 1/4 of what i would usually risk intially, and then add to the position as it moves in my favour. That way i risk .25 R per trade.

But i will not averge down with a CFD, its just not something ive found is effective for me.

If i buy a stock, i want to buy it at a place where i can set the stop as tight as possible, and have the greatest possible reward. So try and get the highest Risk:reward. The tighter im able to set my stop, the large the position i can have, and the large the potential profits may be. BUT, if the trade goes against me, that means there is no possibilty of averaging down, as i will lose farm if the stock continues against me.

Is there another way you would approach it techa?