Sunday, November 1, 2009
Tuesday, April 28, 2009
If you listen to stock market commentary there are people who claim that its the fear of this flu that has kept the markets at bay. I think this is ridicules, too! The market is overbought, the economy is still in need of repair, and people fear for recession. Yes, the market has had a great run, but there are technical indications that this market is due for a short-term correction within this bear market. Price alone determines what the market is doing! If a trader gets trapped with all the commentary and predictions of were this market is going, they will lose faith and money. Don't get caught up in the latest fad or media hysteria. Watch and observe price!
I am looking for a needed sell-off. The S+P futures have been testing support over the past two days. The cash markets open and push equity prices higher only to fall at resistance. The markets lose momentum toward the end of day with volume pointing the way. When this support level breaks, I will commit short positions until the next support level.
Wednesday, April 22, 2009
I entered a late day trade for 100 shares of FAZ. I saw some heavy volume and buying power taking the 3X leveraged inverse financial ETF northbound. I decided to hop on board and see how far north it goes. I entered the trade at $9.65 and set a initial stop at $9.23. I will be looking for $10.53 - $10.83 exit. If the financials start to crumble and FAZ gaps up, I will set a $.30 trailing stop and ride the momentum until the resistance mounts. I still feel that the market is due for some correction and financials should lead the way to the downside. However this isn't an emotional game. I will maintain discipline and observe price action for all decisions.
Tuesday, April 21, 2009
The end goal of Trek Trader is to interact within the trading community, to mark itself as a home base--a base of operations, where traders can trek market dynamics and report what they know and have learned. Trek Trader will serve as a trader's community link. The design is meant to inspire people to trade ideas, thoughts, and strategies on current market conditions.
Trek Trader will offer a forum for both the new and experienced trader. The site includes a trader log link that reflects individual trading styles and acts as a diary. Our Trade Plan helps inspire discipline. The education link sends the new trader on the road to success. If you plan your trade and trade your plan, you will fill your pockets with cash.
Trek Trader welcomes new ideas and people. It is looking for new recruits who want to help shape its path. If interested in contributing, please contact us.
Trek Trader Trade PlanThis trade plan should act as a map that can guide the investor to a profitable journey into the global markets. If a trader is disciplined and operates within this guide, that trader can realize the potential of a successful investor. Every trade should be made with strategic consideration with a emphasis on research and protective measures. There are no short-cuts or quick trades that can realize consistent profits. A trader must think before they act. Please trade your plan!
- Identify the direction of the market.
- Identify sector performance relative to S+P 500.
- Identify strong or weak stocks within each sector.
- Identify 200 MA on the 3-min, 13-min, and 60-min charts for stocks and Indices.
- Identify daily 5 MA and 15 MA for stocks and indices.
- Identify overlapping support and resistance levels for stocks and Indices.
- Note daily stochastic for stocks and Indices.
1) Use Set-up Exits.
2) Stop loss = 2% of total account size on any one trade.
3) Stop loss = 1R of position (R = Avg. Risk from trade log).
4) Close position at major area’s of support and resistance.
5) Deploy trailing stop if position moves significantly to lock profits.
2) Define Time Frame (Intra-Day, 2+days, weeks)
3) Size of position?
4) Define risk and reward?
5) Long or short?
- Trade only those stocks with strong entry and exit points.
- Trade Long, stocks with favorable fundamentals and technicals.
- Trade Short, stocks with deteriorating conditions.
- Trade at support and resistance.
- Tighten trailing stop as it moves closer to exit point.
1) Log all trades.
2) Evaluate trades.
3) Evaluate Breaking News.
1) Evaluate and Update Trade Log and Trade Journal.
2) Wall Street Journal
4) Watch for Breaking News that can affect the market.
5) Evaluate Big Picture and define possible trends.
6) Study one particular indicator, market, report, etc about any market.
7) Review Economic Calendar.