How I traded $TPX

Today was a tough day in the markets, stock selection was the key. With $SPY and $QQQ gapping up, it was hard to take trades in the morning. Since going long on any name would be more like chasing.

I traded $TPX on short side. It was a pretty hard stock to short

1. Stock was down almost 40%

2. Market was trending up the the whole day.

I attempted 3 shorts

Attempt 1 I got stopped out quick for  a small loss

Attempt 2. Scratch trade for small profit.

Attempt 3. This was the most successful trade, it had a bit of help from the markets as $SPY and $QQQ were pulling back . Got out on the break of trendline.

If you want to see real time how I navigate through these markets

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LEVERAGE and COMMISSION for my FELLOW Traders:

If you need leverage on your capital and are looking for 100%payout on your profits with competitive commission rates. Email me: dchsn6@gmail.com  and I can help you to join my group and get a group discount. Why pay more when you can pay less.

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Timing your trades with the markets and Trade review for June 5, 2012

As a trader, it’s best to take trades which is in the direction of the markets. I took one trade on $FAST today and lined it up $QQQ and $SPY. Remember 80-90% of the stocks move in the direction of the markets. In this case watching $QQQ would have made more sense since $FAST is a NASDAQ stocks and some time $QQQ and $SPY can move in different directions. Hence, the important thing to not is where is the stock listed at.

As I mentioned in my previous post about base break play  (https://dchsn6.wordpress.com/2012/06/04/how-to-trade-bear-market-and-trade-review-of-june-42012/ ) . This was yet another  3:1 reward: risk trade .

Check out the trade which I took in Fast at 10:35 lining it up with $SPY and $QQQ. When I went short $SPY and $QQQ were at its double top resistance and we pulling back from its intraday upmove.

If you want to see real time how I navigate through these markets

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LEVERAGE and COMMISSION for my FELLOW Traders:

If you need leverage on your capital and are looking for 100%payout on your profits with competitive commission rates. Email me: dchsn6@gmail.com  and I can help you to join my group and get a group discount. Why pay more when you can pay less.

How to trade Bear Market and trade review of June 4,2012

I personally have only two types of play to trade bear markets.

1. Retracement to moving average

2. Base break.

A really good example is PAY. It trended really well early this morning. However, due to DAS issues which I faced the whole morning, I wasn’t able to get in on the first retracement. But I played the base break. It looks like I covered too soon. But the trade for me for 4:1 reward :risk trade. I would take it any time of the day. Should have held longer yes, but my charts showing dots all over the place wasn’t something I wanted to risk my $$ on.

In bear markets, there is a common misperception that you just keep on shorting the lows.  However, like bull markets, you need to be selective on which stocks to short cause if yuo get trapped in on one short squeeze you can pretty much give back all the gains you made before.

If you want to see real time how I navigate through these markets

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LEVERAGE and COMMISSION for my FELLOW Traders:

If you need leverage on your capital and are looking for 100%payout on your profits with competitive commission rates. Email me: dchsn6@gmail.com  and I can help you to join my group and get a group discount. Why pay more when you can pay less.

Buy The Fucking Dip?

NOOOOOOOO!!!! SPY is trending down, if your not short yet, wait for a dead cat bounce for a better risk-reward opportunity to go short. $SPY broke not only  below 129.67 on heavy volume, but also the bear flag it’s been forming since May 18, 2012.

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Downside targets on SPY 124.89, 122.75,  120.04.

I wouldn’t be surprised to see those targets get hit in the month of June. Panick selling started last Friday and bear markets usually have a bigger and quicker flush down than slow uptrending grind.

For long term investors, hold on to your seat belts, if you thought last summer was bumpy and it made your head spin, this one is gonna make you doubt if you should ever invest in equities anymore.

For traders, the increase in volatility is going to be good. as we can see extended moves to the downside. Going Long on equities might make you an investor from a trader, if you don’t cut your losses on long positions. It’s going to bring a lot of opportunities, be ready to flip on a dime.

If you want to see real time how I navigate through these markets

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Hit It Out!! Damn It!!

You might have the best trading plan out there or the best trading setups that you trade off. But if you don’t HIT OUT your losers once they they hit their stops. It could be game over for you as a trader sooner than you think.

Taking a loss in a trade is the hardest thing for a new trader, as he would have read through many books and would have thought he is ready to Rock N Roll and ready to make a killing in the markets. He might run on a few  hot streaks of what is called a beginner’s luck but when the luck starts to run out, that is when the true mettle of the trader starts reflecting i.e. when he has losses does he hit out and take a small loss or does he stay in and let the trade go against him and wait and wait hoping for the trade to go in the direction he wanted.

As a trader, the first RULE for trading is NEVER LOSE, but when you lose, DON’T LOSE A LOT.

Survival is key in this world of trading, there would be times when markets are just not conducive for trading. Those are the times when a trader needs to sit out and not go all guns blazing thinking he will succeed in it. Different strategies work in different market conditions. The idea is to identify what strategy  you have and what market conditions you want to run it on.

If the price is at your exit price, HIT IT OUT, don’t wait and say to yourself, this times it’s going to be different.

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Welcome Y’all

I have decided to start a new blog where I will share my trading ideas, my read on the markets, trader’s psychology. A lot of it would be what I have experienced as a trader over the past few years.

If your a new trader or an experienced trader and need some guidance email me dchsn6@gmail.com . I will try my best to give you my take on how things work in this day trading world.

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Follow me on twitter https://twitter.com/#!/dchsn6

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