Sanrith Descartes
Von Clippowicz
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Yeah i had it and made some scratch on it a while back. That is the only reason I knew about their electric vans and shit. From owning it
Investing General Discussion
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Jysin
Ahn'Qiraj Raider
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Always have a trade plan. That is especially important for taking profits. I covered this a while back about scaling out profit along the way. I personally take a small portion off the table around 2-5%, then 7-10%, etc depending on price action. If you are sitting waiting for the entire big move, (which may never come) you can be left sitting back at your entry or staring at a loss. I am far more comfortable giving a position room to breathe and go below my entry if I have already taken profit along the way.
Holding and hoping is not a strategy.
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Jysin
Ahn'Qiraj Raider
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Another important lesson yesterday is position sizing and risk. In my swing trading, I am never more than 30-40% invested at absolute maximum (no margin). If the market turns against you and you haven't cut a loser, perhaps in a stock you really believe in, you can average down. This can be extremely risky though, so identifying critical support levels is important. I had a few swings red yesterday, some I cut loose with realized losses, but some others I was confident in buying at critical support, bringing my cost basis down.
After averaging down, and then having a bigger position than normal, I monitor closely. If there is any sign of failing that critical support, you need to cut it immediately. On a solid stock, far more often you will see a bounce. This ends up limiting your losses and in some cases gives an opportunity for a great cost basis over the coming day(s) in that swing trade.
If the market (S&P 500) holds the 20 day support today, which it reclaimed in the afternoon surge yesterday, we could see a big rebound in prices. I am in a good position to profit handsomely.
Conversely, if you go way too big size / position, you will instantly be looking at large losses on a market downturn, plus have 0 room to navigate buying the big dips at support to manage your way back to green sooner. A common mistake is misjudging basic math on recovering losses. If you lose 10% of a position, you need to gain 11.1% to recover that position. It gets far worse the bigger the losses. 50% loss will take a 100% gain to recover. It may seem obvious, but the people who hold and hope get crushed by this.
Here is a chart breaking this down:
After averaging down, and then having a bigger position than normal, I monitor closely. If there is any sign of failing that critical support, you need to cut it immediately. On a solid stock, far more often you will see a bounce. This ends up limiting your losses and in some cases gives an opportunity for a great cost basis over the coming day(s) in that swing trade.
If the market (S&P 500) holds the 20 day support today, which it reclaimed in the afternoon surge yesterday, we could see a big rebound in prices. I am in a good position to profit handsomely.
Conversely, if you go way too big size / position, you will instantly be looking at large losses on a market downturn, plus have 0 room to navigate buying the big dips at support to manage your way back to green sooner. A common mistake is misjudging basic math on recovering losses. If you lose 10% of a position, you need to gain 11.1% to recover that position. It gets far worse the bigger the losses. 50% loss will take a 100% gain to recover. It may seem obvious, but the people who hold and hope get crushed by this.
Here is a chart breaking this down:
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Hateyou
Not Great, Not Terrible
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It is when you’re a wage slave and can just swing trade every so often cause you’re too busy at work to be active!
I didn’t even know the market dipped so hard yesterday until late afternoon. Just busy day. I would’ve put some cash to work on that hard dip had I been watching.
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Sanrith Descartes
Von Clippowicz
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I am sort of in the same boat, but have more freedom. Here is what I suggest and do. Look at the futures in the pre-market and find something that looks interesting. Then stalk it like prey. There is where technicals come into play. If you see a deep red day pre-market, set some limit orders on stuff you want down at say the 50 DMA or the line of support. If they crash down there, then great. If they dont, you order expires unfilled. I never just "hit the trade button". Everything I do is based on technical levels and limit orders. Shit I stalked CRM for at least 2 weeks with it constantly bouncing above the price I was willing to pay for it. Eventually, it hit and I own it at the price I wanted. Technicals, limit orders and patience.
If you have specific stocks/etfs you would like to buy, post them and I will be glad to give you my estimates for the technical support prices and possible entries I would consider.
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Hateyou
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Right now I’m just stalking FTEC for a long term hold. Shifting all my QQQ over. Been waiting for it to go closer to $100.
You don’t have to do the DMA work for me, I can do it just haven’t had time. My mornings are busy getting my kid ready for school, getting caught up on emails, etc so I rarely watch premarket unless I’m specifically interested in a certain stock or wondering how the overall premarket looks.
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Sanrith Descartes
Von Clippowicz
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The chart of FTEC I posted above. My ideal entry would be the 100 DMA ($100.69) which is 11% off the high. With the amount of Fed printing going on and no sign of slowing down from Janet Powell I am not sure we will see it anytime soon. That is why I went in with my first buy at the support line at $104.25. I had a big second buy in the system if things got really crazy yesterday down at $101.00.
Sanrith Descartes
Von Clippowicz
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Hateyou
Not Great, Not Terrible
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Yeah I would’ve got in at $104 if I was paying attention. I’ll probably just set a limit buy later today
Sanrith Descartes
Von Clippowicz
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Might not be a bad idea, futures are turning south all of a sudden
Edit: 10-yr just punched up above 1.4%
Sanrith Descartes
Von Clippowicz
- 41,535
- 107,627
Ravishing
Uninspiring Title
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Sanrith Descartes
Von Clippowicz
- 41,535
- 107,627
Jysin
Ahn'Qiraj Raider
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I was kind of expecting the SPY to back test the 20 day. Didn't think it would happen this quickly premarket. There is a 386.14 pivot below that it also tested and held.
Hopefully just putting in an early low, reconfirm, and we get upward movement.
Got plans in place for either directional movement.
Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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Sanrith Descartes
Von Clippowicz
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Around midnight Nasdaq was scraping the 13k level. I think we revisit that level early in the session and see if it bounces. The 10-yr is gonna spook some algos.
Ravishing
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