Owner: A Trade A Day URL:www.atradeaday.com Join Date: Tue, 18 Sep 2007 14:00:04 -0500 Rating:0 Site Description: A source for trading ideas. Site statistics:Click here
5 Options Blogs I really like 2007-11-07 03:00:38 Lately, I’ve been investigating option strategies as a way to leverage my current portfolio. There are a few ways I could use options in my own trading. One way in which I’ve gained some valuable insight is by reading other people’s experience. I wanted to share 5 options blogs that I think are worth a read and an add to your rss reader.
1. My Trader’s Journal
I like the way Alex takes the reader through his put writing experiences. I’ve learned quite a bit from him during the short time I’ve know about mytrader’s journal.
2. Options
Pundit
Options Pundit is flat out one of the best blogs for option traders. There’s a lot of good material, and I like reading his trading results.
3. Options Trading Blog
I’ve known of this blog only a short time, but I find Toni’s experiences to be useful.
4. Options Trading Beginner
Sounds like myself, actually for beginning a beginner OTB does an excellent job explaining core option trading c Read more:Blogs
How I Trade Support and Resistance 2007-11-06 03:00:59 Support and resistance is a fundamental concept in trading. I would suspect most of the readers of this blog have at least a basic understanding of how support and resistance works in markets.
Here is a good definition of support and resistance. What I wanted to talk about is how I use it in my trading activities.
I trade with three fundamental attributes of support and resistance:
1. For me, support and resistance are zones, not finite numbers. The greater the timeframe, the more this attribute applies. I am looking at daily charts and longer, I draw the support and resistance zone as 1/4 ATR beyond the level of support. I expect that price will begin to change direction in this area. Combined with moving averages and certain patterns, like the hammer, this has worked well.
2. Support/resistance is validated by the number of times the zone is touched. Corey at afraid to trade used this “number of times touched method” as one measure to assess the validity of trend lines. I share Read more:Trade
, Support
, Resistance
VIVO Las Vegas 2007-11-15 03:00:43 I feel like such a loser. I’m not going to the Trader’s Expo in Las Vegas
However, I will seriously consider the one in NYC. The city would be fun and I can visit some friends to boot. Anyway, today’s trading idea is brought to you by VIVO.
VIVO is in the early stages of forming an ascending triangle. The trade is to play the hammer that has formed against the support of the 50 day SMA. Given the carnage the bears have inflicted on the market, I’m playing any longs very carefully.
Honestly, I’m trying to restrain any bias I have in picking my trades. It’s been difficult of late because some of the success
I have had with my shorts. I expect a retracement, but whether any up move turns into a continuation of the long term uptrend is anyone’s guess. The VIVO trade is in a good position to take advantage of any market retracement. An uptrending market, even a brief move, will help VIVO move back up to the 34 area.
Let’s take a look at the
Swinging for the Fences 2007-11-14 01:00:54 I want to give you an example of why you do not swing for the fences. This example should make it very clear how important it is to maintain a strict risk management plan, and how the best setups can go wrong very quickly.
Case in point Walmart:
Walmart has all the fundamental economic reasons for the stock to tank. A recessionary economy will stifle consumer spending. The weak dollar will make their cost of doing business with overseas firms more expensive. The cost of transportation will eat into their margins as oil continues up.
Walmart also had some excellent technical reasons to short the stock.
1. The stock was below its 200 SMA
2. The stock’s short term downtrend was supported by overall market direction.
3. The stock was forming a bear flag which provided a low risk entry point.
Today the stock gapped above what I would have considered for a stop. It’s these kind of insane, unexplainable market movements that remind a trader to use risk management. For me, I use R Read more:Swinging
IFN Trading Idea 2007-11-13 03:00:58 There’s just a ton of shorting opportunity out there right now. IFN is forming a bear flag and I intend to capitalize on any further down move in the stock. Let’s look at the chart:
This trade is pure text book. IFN has dropped considerably, all the way to its 50 sma. The 50 sma is historically a significant are of support. Because IFN has dropped almost 8% over the past 5 sessions, some rest is warranted. What I would like to see, ideally, is another session or two of consolidation and then a breakdown through the 50 SMA on heavy volume. Next stop is 200 SMA with a pause at 50. At least that’s how it plays in my plan. I would also consider putting a stop in at 48 once that support is broken.
Like I said at the beginning, there is a ton of opportunity, but you need to be smart. The Dow is down almost 5% over the past 4 sessions, and the Nasdaq is down 8% over the last 4 sessions and approaching its 200 SMA. The market is due for a rest of its own. That said, if the i Read more:Trading
Trading Bull and Bear Traps 2007-11-12 03:00:48 I like to post potential trades on Monday, but due to the substantial down move last week, there’s not much that I would be trading. Until there’s some kind of consolidation in the leaders, there will not be many low risk setups that I would trade.
Let’s talk about a strategy that I employ in markets that have moved violently in one direction. It’s called a trap. A trap is a pattern where the stock price opens in the opposite direction of the previous day’s move and continues in that direction. When the stock moves up and the next day gaps into the range of the previous day, it’s called a bull trap. When the stock moves down and the next day gapes into the range of the previous day, it’s called a bear trap.
Here is a simple example of a trap: On Monday stock XYZ opens at 2 and closes at 1. Then on Tuesday stock xyz opens at 1.50 and closes at 3. Why is this significant? Well emotion drives this setup. On Monday, traders sold the stock short a Read more:Trading
, Traps
Trading Ideas Update 2007-11-11 03:00:09 The AMTD trade has been stopped back at break even.
The AGU trade is doing ok considering the overall market.
Same deal with the KGC trade. Still in it untill forced out.
The SINA trade has been stopped.
The GSOL trade has been stopped.
The IBM trade is sitting on the other side 2.5R.
The FCX trade never set up.
The APA trade is still open, but just below my entry.
The EDU trade is doing ok. Not quite 1R.
Stay tuned!
Read more:Trading
, Update
Top 5 Ways to Recession Proof Your Portfolio 2007-11-20 03:00:07 With the market giving back weeks of gains and the talk of recession beginning to crescendo It’s time to talk about “recession proofing your portfolio” Now, you can go to your favorite mainstream media’s business section and read about buying “defense stocks” or gold etf’s, but they’re subject to supply and demand like everything else.
No matter what sector you did buy, a drag on the economy will drag them all down eventually, and as the US economy falls deeper into a recession, foreign economies will follow. So investing oversees isn’t a silver bullet.
So what’s the best course of action during a recession for people with money in the market? Here’s my top 5:
1.Take a more active role in your portfolio’s management.
Having a clearly defined plan will give you the power to move in and out of positions with confidence. When I hear the word recession, I think about the people who are going to lose their jobs, not my portfolio. That comes Read more:Proof
, Portfolio
Google’s down! That means buy…Not! 2007-11-19 03:00:52 Last week I saw an article saying Google
’s down! That means buy!
Whatever your opinion of the internet giant, buying anything because it’s cheaper is not a good idea. I recognize that GOOG is a leader and their profit potential is huge, but that doesn’t matter to you unless the stock price goes up. Let’s look at the chart:
Is a bounce likely? Yes. Is it a good time to buy? Maybe for a short term trade.
GOOG opened and closed at almost the exact same price on Friday. Kind of remarkable for a stock with a 14 period ATR of 23! When the open, high, and close are identical it is called a Dragon Fly Doji. This is significant because GOOG is sitting on a major area of support, the 50 SMA. So I would bet that GOOG will bounce.
But there’s no long term setup present. Those that buy GOOG now will probably see some short term price appreciation. However, looking over the longer term, it’s difficult to say where GOOG is headed. Considering the direction of the
Trading Ideas Update 2007-11-18 03:00:14 Time for another edition of Trading
Ideas Update
!
If the AGU trade continues to break down, I’m out at break even. I actually like the stock as a short under 53.00.
We’ll see if the KGC trade can find legs at the 50 SMA.
The IBM trade has done well for me and is consolidating. We’ll see if there’s another down leg in the works.
The APA trade was stopped for a 1R loss.
The EDU trade needs to get below its 50 SMA. I would expect good things once that support is broken.
The IFN trade never setup.
The VIVO trade has setup. Should be interesting to see whether I’m spitting into the wind or a market genius by calling a short term bottom.
Something Completely Different 2007-11-17 03:00:53 I don’t know really where to begin with this one. I thought it was funny then at the end it just disturbs me.
Link Love Friday 2007-11-16 03:00:24 Blue Dog and Chris Perruna share their thoughts on the VISA IPO.
Discover your talents at the kirk report.
Blain at stocktradingtogo.com locked in a nice gain on his Schwab trade.
Clever Dude is feeling the pain of high gas prices.
Do you know the six hidden benefits of day trading?
Jethro is explaining charting basics over at Trading Goddess.
Dividended Money wants to know when opportunity knocks, will you answer?
Trader’s Narrative is betting on a bear market in China. I will be checking out that short etf, btw.
Stock Picks Bob shares his thoughts on difficult markets.
Paolo discusses market cycles.
Ever wonder when you trade, where the money comes from?
Read more:Friday
Trading Ideas Update 2007-11-25 03:00:03 I’m out of the AGU trade at breakeven. I mismanaged that one. Longs at the end of a bull move never seem to workout for me. With obvious reasons, they can’t stand up to the blistering assault of negative market direction.
Out of the KGC trade for a 3R gain.
The IBM trade consolidating. Still looking very bearish.
The EDU trade is also acting well. However, I would like to see it stay under its 50 SMA.
Looks like I was spitting into the wind with VIVO. 1R Loss.
I didn’t take the INTC or MSFT trades. You may want to see how they behave intra day on Monday for another entry.
Read more:Trading
, Update
Something Completely Different 2007-11-24 03:00:04 Who thought soccer could be so hilarious.
I especially like 2:43. Classic.
Link Love Friday 2007-11-23 03:00:04 Although Thanksgiving shortened the trading week, there’s still lots of great articles to catch up on.
Million Dollar Journey has a three part series on How Call Options Work.
Here’s an honest review of Option Trading Mistakes by Options Trading Daybook.
Jeff White at thestockbandit.net was recently interviewed by traderinterviews.com.
Trade 4 Cash introduces us to Designing a Breakout System.
Why Do People Give Out Free Loans to Companies by Buying their Gift Cards?. Money Ning wants to know!
Bullish Jim is looking for a Port in a Storm as his account feels the effects of the recent downturn in the market. A Stella or three sounds good to me!
Trader Gav shares 45 Ways to Avoid Losing Money Trading Forex.
Mo-trader breaks down his trading style in Anatomy of a Day Trade.
Blogrush? More Like BlogNot, says the wild1.
Sole Trader poses the question: Read more:Friday
Top 5 Trading Ideas 2007-11-22 03:00:00 US markets are closed for Thanksgiving. Here are 5 stocks that are about to break lower. Keep a close eye on these as we enter next week.
Amazing how the leaders rollover with the rest of the market.
Read more:Trading
INTC and MSFT about to Cave 2007-11-21 03:00:33 There are still many shorting opportunities out there. A little digging will yield some excellent setups. I didn’t need to go farther than the NASDAQ 100 to find these bad boys:
First chart is INTC. Why would I want to short INTC:
1. The NASDAQ is tanking. It’s down to its 200 SMA and consolidating.
2. INTC is has broken its 50 SMA, consolidated and ready for a new leg down.
I like INTC under 25.00.
Second chart is MSFT. Why would I want to short MSFT?
1. Because, like INTC, the market is tanking and MSFT will go with it.
2. MSFT is forming a bear flag.
3. MSFT has a gap it wants to close.
4. Because the only thing Windows does better than Linux is crash. Oh Snap!
I like MSFT under 33.70.
Word of caution. Going into the Thanksgiving weekend, liquidity will dry up. It’s probably best to wait until next week to initiate any new positions. I will be take the rest of the week off from trading, but not the blog.
Good Luck!
Something Completely Different 2007-12-01 02:00:06 In case you didn’t know, I love aviation. The military stuff especially. This video isn’t new, but it’s very cool.
Link Love Friday 2007-11-30 02:00:46 There’s only a few blog posts that really blow me away. Dr. Brett has produced another one.
Developed a tolerance for regular ETFs? Time to take a swig of Ultra ETFs.
Want to trade like a pro? Learn to consider risk first.
Why is the price of oil skyrocketing? I mean beside the weak dollar, and the tight supply, oh, and the insatiable demand.
Speaking of oil and its impact. Food inflation will continue and accelerate.
I can always count on Caroline for a gem to make me a better blogger. Here’s a list of do follow social bookmarking sites.
Finally, How do you find the perfect gift for the lady in your life?
Read more:Friday
What kind of trader are you? 2007-11-29 02:00:31 I like reading through comments on trading blogs. However, one type of comment always puzzles me. It’s a type of statement like: “I’m a swing trader” or “I only trade specific stocks”. Far be it from me to scrutinize what market you trade and what timeframe you use, but I was hoping someone would enlighten me.
As a trader and a technician, I find statements like, “I only trade NASDAQ 100 stocks.” to be self-limiting perceptions. I am a trader. Not a day, swing, or position trader. In fact, I regularly employ them all. I do use specific time frames, but my timeframe is fluid wherever I find an edge. I have been more profitable as I have stepped away from day trading every day and instead use my day trade setups to enter and exit swing trades. This merger of trading styles is where I have found an edge.
I trade everything. I began trading stocks and, most recently, have been trading stocks exclusively. There was a time when I traded the emini S&P intraday, but
Rock on ATVI 2007-11-28 02:00:51
I love computer games. However, I have been resisting buying a console. Maybe I’m too old. I mean I used to program my own games in BASIC on a PC junior. Anyway, If there’s one game that could pull me over, it’s the guitar hero series.
My friend and I, both life long PC gamers, would go over to Best Buy to play it on the big screen. I guess I’m a console video gamer in denial. Christmas is coming so maybe there will be a playstation under that tree for Daddy.
I typically don’t pay much attention to stock new stories, but Activision’s guidance due to the success of Guitar Hero III is hard to ignore. I would have hated to been short ATVI today. Definately a bear trap. Although there wasn’t much intraday to trade.
How do you make money with this one. Well, have a long position yesterday, or wait for ATVI to offer a low risk entry like a flag or base.
Top 5 Trading Ideas for 11/28 2007-11-28 02:00:36 This morning’s Top 5 Trading
Ideas are brought to you by double bottoms and bear flags.
IPG is carving out the finishing touches on a double bottom. I like IPG above 9.35.
I would have like to see GILD correct a bit more. I still like it above 45.
Another double bottom. I like VMED above 19.25.
I like the bear flag CF is painting on my screen. Breaking through the 50 SMA just adds more weight to my short. I like CF below 77.70.
NFG tried to setup today, but rallied back into the bear flag pattern. Normally, I would pass on this one, but If the market continues to plummet, I think NFG will visit it’s 200 SMA. I like NFG below 46.30.
My method specifically states that I will be in trades that are confirmed by market direction. I always have a watchlist of stocks that can go either way, but the success of my trades depend on being in synch with the market’s trend.
Top 5 Trading Ideas for 11/27 2007-11-27 02:00:23 Here are my top 5 trading ideas for 11/27. I even threw two longs in to satisfy those of you banking on a rally.
A symmetrical triangle with a bearish slant. I like it under 101.
SIAL is clinging to an upward sloping trendline. I don’t think it can withstand the withering attack of the bears. I like SIAL below 49.50.
Here’s another symmetrical triangle with bearish overtones. I like BG under 105.
Looks like QSC is ready for bigger moves. I like QSC over 5.18.
Is NIHD forming a double bottom or ready to break to new lows? I like NIHD over 54.50.
See you tomorrow!
Read more:Trading
NXY Trading Idea 2007-11-26 03:00:37 More fodder for sellers. NXY is ready to setup by breaking lower. The stock has formed your typical consolidation/triangle/bear flag. It doesn’t really matter. At some point in my trading career I realized that picture perfect patterns didn’t always make money. You just get a feel for what patterns should work and what patterns shouldn’t. The stock has broken and closed below its weekly 50 SMA. Once it breaks 29ish, next stop is 24 with an ultimate target of the weekly 200 SMA at 21.
Good Luck!
Read more:Trading
Something Completely Different 2007-12-08 01:01:07 I’m a father of three boys. Fortunately for me, they were born spaced apart by a few years. I also have the best wife in the world to help care for them.
Unfortunately for this guy, his wife died soon after his triplets were born.
If you have one child, you can imagine the work and sacrifice he has in front of him. If you don’t have kids, imagine the thing you cherish most in this world. Now imagine it won’t stop asking you for things, and costs hundreds of dollars per month to maintain.
I’m thinking of doing something for him. If you have any ideas. Let me know
Hosting The 66th Festival of Stocks 2007-12-06 21:35:31 Late development, but I’ve agreed to host the 66th festival of stocks on December 10th. This is a great opportunity to get some exposure for your blog. You can sign up at Blog Carnival. Also check out the Festival
of Stocks
Homepage
Read more:Hosting
Link Love Friday 2007-12-07 01:01:48 What are the Top 10 Reasons Driving The Stock Market?
I haven’t experienced my Trading Performance Falling Off, but I know where to go if it does.
Need some Stock Picks?
STG asks if Uranium is About to Explode.
Have you Added to Your IRA?
Do you have a Third Tier Blog?
Here’s Three Essential Reasons to Invest for Dividends.
Excellent Q&A with Toni Hansen. Here’s Part II.
Did you know that there are 38 Steps to Becoming a Trader?
Read more:Friday
Top 5 Trading Ideas for 12/6 2007-12-06 01:01:28 This week I’ve seen a lot of stocks with some bottoming action. Being the bear that I am, I found it perplexing that stocks would be bottoming out this early. I mean, there are a lot of economic reasons to be bearish. My thoughts aside, the charts said to buy and for the past three days, I have posting charts all with bullish formations.
Today was confirmation that some sort of bull move is underway. How long it will last is anyone’s guess, but it is a good lesson to trade what you see, not what you think.
Just a few notes. Volume needs to be strong on any breakout. Support and resistance are zones for me, so a stock may be technically over its resistance. You’ll need to take into account its daily range in considering the best time to buy. Using these daily trades as intraday setups is in the trading plan for some traders. I also like to merge the daily setup with an intraday setup to lower my risk in the longer term trade.
1. ACS
2. AOD
3. EXG
4. NU
5. NYX
Read more:Trading
Top 5 Trading Ideas for 12/4 2007-12-04 02:00:16 I’m starting to see some stocks bottom out and head higher. My play it to grab the ones have the greatest upward momentum as they break through previous areas of resistance.
1. YHOO
2. NTCT
3. EGOV
4. BPHX
5. ASIA
Not much else to say. Stops can be put in several places depending on your method. I have high expectations for these types of patterns. They either keep moving or I’m out. I’ll allow the formation of a base or small bull flag after the stock has broken out, but I like to move my stops to break even soon after breakout.
Read more:Trading
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