Saturday, August 29, 2009

Finvize

Finvize

I have been working with the heatmap on FINVIZ. Here is a video from Daytraderrocktar that uses this tool.



http://www.youtube.com/watch?v=pLWZwzH7xCg

Convergence trading strategy

A convergence trading strategy is a trade idea based on the principle that when the price of a stock (or stock portfolio) significantly deviates from its long-term trend, it will sooner or later converge (move back) back to its original trend. For example, a trading strategy that generates a buy signal at every dip of the stock price in a general up trend is a convergence trading strategy. Interesting

Sunday, August 23, 2009

New Covered Call Positions

Wrote new covered calls on HAL, JWN, MSFT, CSCO. Also, am developing a new spreadsheet as shown.


Tuesday, August 18, 2009

Tuesday 8/18/09


Still playing a short bet and the market was up. I might have to give up in the morning based on what I see.

Monday, August 17, 2009

Sunday, August 16, 2009

Still Watching UL


Will wait some more before buying.

Last Weeks Short Term Results


All positions were held overnight. Pretty good results of my first week in using my new short term spreadsheet. I will be modifying this sheet often and will post soon.

New Short Term Spread Sheet Being Developed


I have been developing a spreadsheet that will help me keep track of my short term trades and help me get out. Here is a picture of this sheet. I traded AA at the end of the day oon Friday 14 August 09.

Saturday, August 8, 2009

Want to purchase some Unilever - UL


But I will wait till a two or three day pull-back which I feel is starting. Maybe on Wed or Thursday.

Thursday, August 6, 2009

Premarket Heatmap for NASDAQ


NASDAQ Premarket Heatmap




http://screening.nasdaq.com/heatmaps/heatmap_100.asp

Trading Plan Found on Web

A Day In the Life of a Trader

This is an EXAMPLE of how one trader spends his day. You must use a routine that is tailored to your trading style, schedule, and mind set.

Post/Pre-market Analysis

1. Reboot computer to clear memory, restart trading platform software.
2. Double-check cell phone charged (with trade desk on speed-dial).
3. Check daily charts of major indices for major S/R levels nearby. Mark any new levels on the charts (DJIA, SPX, COMP).
4. Check Briefing.com http://www.briefing.com/Investor/Index.htm
1. Economic Calendar- What announcements today, especially during market hours?
2. Market Snapshot / Stock Market Update – Asian and European markets, futures
3. Market Snapshot – Page One (market-moving stories



5. Check nasdaq.com http://www.nasdaq.com/
1. Pre-Market Indicator
2. Pre-Market Heat Map



6. Check Smartmoney.com http://www.smartmoney.com

a. Tools and Maps / Map of the Market

7. Check other favorite web sites ______________________



8. From the above, determine a probable market direction for the morning.






Market Open

1. Check charts of DJIA, SPX, NDX for gaps and first few minutes’ direction.
2. Scan for gaps in same direction as market gapped (or initial market direction).
3. From gapping stock list, review each chart and determine if a candidate. Make a sub-watchlist #1 of gap candidates
4. Between 9:30 and 10:00, check the stocks on the gap watchlist. For each one:
1. Switch chart to daily view, 6 months. Draw in S/R lines near the current price. Note the direction of price – up or down.
2. Switch to 60-minute, 10-day view. Draw in S/R lines near the current price.
3. Switch to 5-minute, 2-day view. Draw in S/R lines near the current price.



5. If not yet 10:00 AM, start the same process as in 4. above on the entire stock list.



10:00 ET – Gap Time

6. Click through gap watchlist, whose charts now have S/R lines drawn, using 5-minute 2-day chart. For each one:
1. Check current price against nearest S/R. Consider for a “gap and go” if:

1. there is no significant S/R in the way.
2. volume is much higher than normal.
3. price has filled less than half of the opening gap.
4. 10:00 reversal doesn’t significantly reverse – just a wobble, if anything.
5. price, 8, 13, and 21-period EMA’s are all aligned.
6. Market is not moving against gap direction.
7. If all OK, enter trade and use 8-period EMA as stop (or use 1.5 ATR trailing stop).
8. If stock fails test for a gap-an-go, consider for a gap fade instead. If a good fade candidate, enter trade and place stop on other side of nearest S/R, but at least 1 ATR away from entry price.



After the Gap

When finished managing gap trades, begin regular daily routine:

7. Check stocks identified in step #5 above for trade setups. Look for stocks near one S/R level and far from the next one. For each one found:
1. Consider buying or shorting breakouts ONLY if the market is running strongly in the same direction.
2. Otherwise consider buying dips into upward reversals at support, or shorting rallies into downward reversals at resistance.
3. If a good candidate, check other factors:

1. Volume in “my” direction, especially on long trades.
2. Trade direction same as current market direction.
3. Indicator confirmation (MACD, Stochastics, RSI or CCI, ADX)
4. If all OK enter the trade, with a stop on the other side of nearest S/R, but at least one ATR from entry price.
5. Use money management stops to protect profits once profit = 1X initial risk. Don’t let a winner become a loser.
6. Take profits when target is reached (consider partial, with trailing stop on rest).




8. Finish scanning through entire stock list for step #4. Put new candidates found into watchlist #2.



9. Continue scanning through watchlist #2 for the rest of the day, following the steps listed under #7. Rinse and repeat.



Other Notes:

Chart Setup:

1. 15-minute, 10-day for scanning and planning; 5-min 2-day for trading.
2. 3 EMA’s (8/13/21 for gap trades, 13/21/34 for others)
3. Bollinger Bands (20 pma, 2 SD)
4. Volume (with MA)
5. ADX (use default 14/14/14, or 8/13/13 if available)
6. One momentum indicator – MACD (12/26/9), CCI (20), RSI(14) or Stochastics (14-3-3).



Monitors:

1. Similar to OTA layout
2. 4 charts, all 5-min, 2-day – DJIA, SPX, COMP, QQQQ
3. 4 charts, linked to Level II (stock being traded) – 5, 15, 60-minute, daily
4. Open Orders and Open Positions windows.




http://www.goodeandallen.com/upload/ota/Essays_and_Articles/A%20Day%20In%20the%20Life%20of%20a%20Trader.doc

Wednesday, August 5, 2009

Heat Map


I have just started using this heatmap and excellent stock screener from FINVIZ. I am starting to change some of my methods.

Down Day Plan


Looks like the Stock futures indicate a down day. Some things to look at.


On a Down Day

1. Buy some stock or add to your position - but wait till the trend begins to turn up. Could be a couple of days for a strong trending market. Don't guess the bottoms.

2. Take some profit early.

3. Look to buy the Inverse ETFS
Materials UYM - SMN
S&P 500 UWM - TWM

4. Look to buy back some Covered Calls. Put Limit orders out.

5. Plan Rollups if in serious trouble on positions.

Tuesday, August 4, 2009

Free Alerts to my Cell Phone


Free and in real-time. Others have a 20 minute delay.

I have been using a program to determine trades and do autotrading when I am at home and it is excellent - Amibroker. While Amibroker does do alerts to a cell or email - it needs to be running which is difficult when traveling. I travel a lot and I do not want to miss the big moves when I am not at my machine. I have found a free service from www.Zignals.oom that notifies me in real-time instead of a 20 minute delay like other free services. Further, it allows alerts and simple backtesting for price channels and moving average crossing that are very good at alerting you to the big moves of the day. Give it a try and let me know what you think. I just started using it so I need to get more familiar with it and see if it fits my lifestyle. Very easy to use.

Zignals