How I trade

[tech/a]

Really
I know your Joshing!

Click to expand

 

[beamstas]

Hi Brad

Which Cfd provider will let u short ASB(austal)? Thanks

Not sure
Im with GO Markets right now
And they will

Cheers
Brad

 

[It's Snake Pliskin]

Really
I know your Joshing!

Click to expand

Some good questions raised there Tech.

 

[johnnyg]

Nice thread Brad, will watch with interest. With most set-ups being long at the moment do you put an importance on hedging your long positions with a short or 2 (in this case ASB and as long as technically they look good)?

 

[beamstas]

Nice thread Brad, will watch with interest. With most set-ups being long at the moment do you put an importance on hedging your long positions with a short or 2 (in this case ASB and as long as technically they look good)?

Ideally you'd have half long and half short positions in your portfolio at any one time.

I am not posting all trades in this thread, just a few random charts. If i placed them all there would be too many charts to keep updating daily.

Cheers
Brad

 

[beamstas]

Really
I know your Joshing!

Click to expand

You are forgetting to overlay my 36 day moving average on to the chart You'll see

 

[nomore4s]

Good thread Brad, some good practical application here.

 

[BBand]

Hi Brad,
Thanks for offering your time and experience.

This ongoing live trade disclosure will demonstrate how to forward test a setup to prove its viability in the current market conditions (for those who are relatively new to trading). Nice to see you also offer reasons why you consider taking the trade

Well done, looking forward to seeing your exits.

Keep up the good work

Peter

 

[Mr J]

Like most analysis the reason why most fail using it is they simply have no idea how to apply it.
Stochastic is no exception!

Stochastics use the same data as already displayed on the chart, so I just stick with the chart. I'm sure some would find stochastics useful as a visual aid though.

 

[tech/a]

Stochastics use the same data as already displayed on the chart, so I just stick with the chart. I'm sure some would find stochastics useful as a visual aid though.

Visuals fine.
When you look at photo of a plane your a long way from flying it.

 

[beamstas]

Visuals fine.
When you look at photo of a plane your a long way from flying it.

Exactly
Alot of people look at an indicator and think that's all they need to know.
But to use one properly you really have to be well versed in why the indicator does what it does and how you can use that to your advantage.

Cheers
Brad

 

[Mr J]

Visuals fine.
When you look at photo of a plane your a long way from flying it.

But when you see the photo, you'll at least know to fly the right way up :.

Your analogy could be intepreted a number of ways. I'll go with the one I prefer, that being that trying to use stochastics without understanding the underlying mechanics is not beneficial. I would go a step further and state that stochastics and any other off-chart-based (i.e. not trendlines etc) indicator is unnecessary since it already appears in the price action.

 

[beamstas]

ASB
6th May: No changes in this one yet
5th May: I am expecting the broader market to roll over in the next few days, so i am quite bearish on equities. This one is really asking to be shorted. The price will normally fall out the bottom of a rising wedge in an uptrending market, so we can expect with reasonable probability that the prices should probe lower in the near future. Another thing we really have to stand up and take notice of is the Type-A bearish divergeance, the stock has made a higher high but the divergeance hasn't. This is a prime example of using Stochastics as a trading indicator. We can expect with reasonable probability that the recent high will not be crossed. Another thing i'd like to bring to attention is the Strong Resistance shown at around the $2.70 mark, (if you don't believe me take a look at the weekly chart). I really like this setup, and with a risk of just 14 cents per share it is looking excellent.

BEC
6th May: No changes for this one yet. Continuing Sideways
5th May: No changes for this one yet
4th May: Nice little pattern with excellent volume traits. I really like yesterdays bar so i will approach this one with an agressive entry. A buy will be triggered if the price moves through $0.17 and i will place a stop loss at $0.145. Not a great deal of liquidity on this one so caution will need to be taken.

IDL
6th May: This one is continuing nicely
5th May: Breakout confirmed with higher volume. Low close suggests there are still plenty of sellers. Trade entered at $0.20.
4th May: Volume dropping in a nice triangle. Will buy on a breakout from the top at $0.20 and place a stop loss at $0.18

FMG
6th May: Break-even stop activated
5th May: Still hoping for a break of the triangle on increased volume.
4th May: Trade was initiated on this one today. Took an agressive entry due to the nature of the volume and price at the time. I'll continue to walk through this trade. Stop moved to $2.39.

FLX
6th May: Stop loss activated at $11.25 for a small loss. This one looks good still and may re-enter in the future
5th May: Very high gap up for FLX, with the price just fading lower all day. Trade entered at $11.89, insted of $11.66 which was planned. This takes the risk from 2% of portfolio to 2.56%. As we don't want to risk that much we can either sell 22% of our position which will bring our risk back to 2%, or move the stop up and cut out 50% of the risk. I'd be inclined to move the stop up to $11.25, which will save on brokerage and still give it a chance to move in our favour with a full position. No-one knows what the market will do tomorrow so i'll just give this one every chance to get on with it.
4th May: Using quite an agressive entry on this one due to the strength of the broader market today. Buying on a breach of todays highs $11.66, and a stop loss below the recent low at $10.84. It's a nice little triangle sitting above support

 

[It's Snake Pliskin]

I would go a step further and state that stochastics and any other off-chart-based (i.e. not trendlines etc) indicator is unnecessary since it already appears in the price action.

It seems contemporary for some to say price action only is the way of the lords of profitability. I disagree totally and say other "things" need consultation, though not total reliance on. If it makes sense why disregrad it?

 

[Mr J]

It seems contemporary for some to say price action only is the way of the lords of profitability. I disagree totally and say other "things" need consultation, though not total reliance on. If it makes sense why disregrad it?

I didn't say that at all. I just that typical indicators (technical indicators) are already shown in price action. Stochastics, RSI, MACD, Bollinger Bands etc are nothing special, they're just derived from formulae that use the chart data.

There are many ways to trade, and I'm not suggesting one is superior than another. What I am suggesting is that technical indicators seek to intepret price action, and they don't provide anything that price action itself doesn't provide.

 

[It's Snake Pliskin]

I didn't say that at all. I just that typical indicators (technical indicators) are already shown in price action. Stochastics, RSI, MACD, Bollinger Bands etc are nothing special, they're just derived from formulae that use the chart data.

There are many ways to trade, and I'm not suggesting one is superior than another. What I am suggesting is that technical indicators seek to intepret price action, and they don't provide anything that price action itself doesn't provide.

Mr J, please don't take my comments as an attack on you or anything such as that. It was just a comment on the contemporary derision of indicators. I am not saying you said anything, otherwise I would have said what you said.
Cheers...

 

[MRC & Co]

Jesus, this is like being at thechartist.

Out of interest, you didn't happen to start over there did you?

 

[sammy84]

Jesus, this is like being at thechartist.

Out of interest, you didn't happen to start over there did you?

I was waiting for someone to point this out

 

[MRC & Co]

I was waiting for someone to point this out

As was I, but no-one did, so I thought I would ask...........

 

[tech/a]

Just think about this a minute.

If that was the same as "The Chartist" dont you think it would attract the attention of Mr Radge.

After all clients like myself pay for access to Mr Radge and his thinking.

Havent seen any of those guessing on "The Other side" behind the Cloak of darkness VIP area.