Posted by 11 February 2009

Tight Stops and Risk/Reward Ratios

Cameron just left a question for me in the comments to last night’s recap. He asked: I’m looking at your way of thinking about the market. One of the biggest questions I have, though, is regarding your stops. You said you set your stop at just .20 over your short dollar amount. With all of [...]

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Posted by 25 April 2007

A ‘Monster’ Capitulation Daytrade

Michelle B submits: On Tuesday, April 24, approaching 2 PM, the time of the day that I regard as the Period Of Treachery—fondly referred to as POT—I noted MNST screaming red on the low ticker. I checked to see if there was news to explain the decline, and there was none. I quickly called up [...]

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Posted by 9 April 2007

STZ: Bull Flag Separating Two Measured Up Legs

Michelle B submits: STZ, on Thursday, April 5, released estimate-beating earnings. I noticed STZ during my premarket news reading, and once the market opened, via the top NYSE gainers scan and its notable movement on the high ticker. It gapped up, filled in the gap, and then made new intra highs within the first thirty [...]

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Posted by 29 March 2007

Profit Punch of Small Price Moves

Michelle B submits: Trading the second leg of two measured up legs separated by a bull flag is one my favorite trades, especially because the trade usually lasts only 30 to 60 minutes. In most cases, I will at least partially anticipate the breakout allowing me to keep a very tight stop loss. What is [...]

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Posted by 26 February 2007

Fractal Fantasy

Michelle B submits: After noticing PSA on the top ten losers’ scan on the NYSE during this past Friday morning, I checked out its daily and saw a potential second, measured down leg from a bear flag: PSA gapped down a bit at the open, did a down leg, based at its lows, and then [...]

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