Archive for July, 2009

It is strange that on the day Share magazine quote this blog about BAE (without giving a link, shame!) I suffered a heavy loss with this stock.

I had an opened position at 332 with stop loss at 310. But yesterday report was bad and the share went all the way to 306 tirgered my stop loss and then jump a bit to 312. Today BAE trades on the upper side 315 at 9:00am.

This is so annoying when it happens because stop loss should protect you from heavy loss but in fact there are sometimes that it protects you from profits…

But still it was mis-judgment by me. I thought that BAE is on the way up, but my calculations were wrong. This is part of them game and it is a risk that every trader takes.

I do think so!
After amazing rally last week and yesterday I think the Dow is ready for pull back. The RSI is almost 70, the Stochastic is 97 so if you don’t want to go short stay out!

The index is way above the 22 ema so in my opinion we should see the Dow back to 8550.

On the other hand the MACD is still rising which gives us mixed signals. So I think it is a smart idea to use a tight stop loss.

I try to do at least one bet per day. I am not looking for huge return but solid 20-30 points. First the timing is important. For this strategy I think it works well when the market is calm. So 15:20 is a good time for the Dow.

Then I use 20 minutes bet but my secret is to open a position even before the actual time. For example if I am going to bet on the time frame 15:20 to 15:40 I will place my bet on 15:19. So my maximum risk is only 52 points.

Then I try to analyze the market using MACD / RSI and EMA on 5 minutes chart. So I try to take an educated guess where the index will go in the next 20 minutes.

You have to remember that prices are not moving in straight lines. They going up and then down, up and down until they find direction. If it is a regular day then during the 20 minutes the index will go up and down several times give you 2-3 options to bank a profit. So even if it seems that you chose the wrong side you still have time that the index will come back to you. Most of the time I close the position after 2 minutes with profit. Sometimes I even play again and again on the same time frame.

Because you relaxed after (hopefully) nice weekend and the week before seems far enough so you can distance yourself from the emotions of last week.

What I do is I check all the shares on my favorite list (8 shares at the moment) to see what they have done during last week and if they develop any trend signs. Then I select the once that I may trade the next week and analyzing them more.

I look for buying point and put a note on my Excel. This seems like easy process but it takes me 2-3 hours. But after I do it I know where to put my attention next week and I have a trading plan for the next five days.

And lesson from last week for myself – don’t take advice from a friend.

Have a good one!

Hi all,

We all know how it is important to have a good platform to use. I recently tried ODL Markets and here is my impression:

Their spread is very good on indexes like DAX, FTSE but on shares they don’t excel on shares. Their share option is a bit limited compared to IG Index but still you can find all the shares under FTSE350 which is more than enough.

I found the platform very easy to use that you can start to use it from the moment you open an account. No learning curve at all. On the other side there aren’t sophisticated tools like trailing stop loss. There is the basic chart tool and that’s it.

On the news I thought it is a bit odd that they dividend section (which is a good idea) has not been updated since Dec 08. The design of the platform is very easy on the eyes (unlike some other platforms) but it has a feel of the 90′s it is not very modern design like Tradefair for example.

The bottom line is very recommended. Easy to use, good spread and easy on the eyes.