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RE: Beginners Questions - Smellypunks - 2016-08-03
Can anyone give advice on buying the point B pull back. If I remember correctly Stan talked about buying the pull back towards the breakout or 30 week ave. I don't like to watch the market but like to set orders. I have set orders for the breakout price a number of times and they have not been filled. So I am not sure the best way to set my orders for the point B (as Stan called it). Example shows stock that I am thinking to enter but not sure where to put my order. I would like to put it at 109 (breakout price) which gives 11% downside risk IMO, but feel again I will miss the stock.
RE: Beginners Questions - isatrader - 2016-08-03
(2016-08-03, 06:16 PM)Smellypunks Wrote: Can anyone give advice on buying the point B pull back. If I remember correctly Stan talked about buying the pull back towards the breakout or 30 week ave. I don't like to watch the market but like to set orders. I have set orders for the breakout price a number of times and they have not been filled. So I am not sure the best way to set my orders for the point B (as Stan called it). Example shows stock that I am thinking to enter but not sure where to put my order. I would like to put it at 109 (breakout price) which gives 11% downside risk IMO, but feel again I will miss the stock.
The B entry point is the first "significant" pullback following a Stage 2A breakout, and the investor method is to enter half your position on the initial breakout to Stage 2A i.e. the A entry point, and then enter the other half position at the lower risk B entry point, which is when the stock has it's first significant pullback - which can sometimes be as far back as the Stage 2A breakout level, but in the strongest stocks, it's will only pullback a bit of the way. And so you can place limit orders at the Stage 2A breakout level, but really the only way to do it properly is to do it manually and follow the stock, as the pullback needs to be substantially lower volume for a valid entry point.
My advice is drop down the timescales to the 2 hour chart, and set up the same settings as the weekly chart, and then simply wait for the stock to move into Stage 4 on the 2 hour chart, and then the B entry point will be once it moves into Stage 1 on the 2 hour chart again and starts to build a base.
Patience is the key to Stage Anaylsis.
RE: Beginners Questions - malaguti - 2016-08-06
Has anyone used options with this method? Just curious
I've read that vs stocks there is a much greater return with very similar risks..
RE: Beginners Questions - isatrader - 2016-08-07
(2016-08-06, 07:08 PM)malaguti Wrote: Has anyone used options with this method? Just curious
I've read that vs stocks there is a much greater return with very similar risks..
I'd be interested to know this as well, including some examples of the actual costs of making options trades.
RE: Beginners Questions - diaz - 2016-08-13
(2016-08-07, 02:29 PM)isatrader Wrote:(2016-08-06, 07:08 PM)malaguti Wrote: Has anyone used options with this method? Just curious
I've read that vs stocks there is a much greater return with very similar risks..
I'd be interested to know this as well, including some examples of the actual costs of making options trades.
I can share an example from a US account. In February of 2016 I purchased 12 June 17th $6 calls of NG at a price of 0.21 cents per call. The cost to me was $271.30 (including $18.99 commission fee plus 0.31 regulatory fee). I sold the calls in April at 0.62 cents. The returned amount to me was $724.70 (including the same $18.99 commission fee plus 0.31 cent regulatory fee).
I technically picked this stock from one of ISA's mentioned stocks so I suppose it followed the method as a Weinstein pick. It was quite painful to watch the option because I knew that it would expire worthless in June if it didn't meet the strike price. But at the time I purchased (February) it did seem that gold could be starting a stage 2. I sold in April because it was too dramatic to watch the price of the call fluctuate and the fact that I could loose all the money, even though I know my initial investment was't very much. Selling in April was a good idea since in May gold took a pretty good dive and the price of the call leveled off to/below my original purchase price.
Note that I did also take a shot at a put option, but that failed miserably and I did loose all the money as the option expired worthless. The fees were the same as noted above.
RE: Beginners Questions - malaguti - 2016-08-14
(2016-08-13, 02:55 PM)diaz Wrote:(2016-08-07, 02:29 PM)isatrader Wrote:(2016-08-06, 07:08 PM)malaguti Wrote: Has anyone used options with this method? Just curious
I've read that vs stocks there is a much greater return with very similar risks..
I'd be interested to know this as well, including some examples of the actual costs of making options trades.
I can share an example from a US account. In February of 2016 I purchased 12 June 17th $6 calls of NG at a price of 0.21 cents per call. The cost to me was $271.30 (including $18.99 commission fee plus 0.31 regulatory fee). I sold the calls in April at 0.62 cents. The returned amount to me was $724.70 (including the same $18.99 commission fee plus 0.31 cent regulatory fee).
I technically picked this stock from one of ISA's mentioned stocks so I suppose it followed the method as a Weinstein pick. It was quite painful to watch the option because I knew that it would expire worthless in June if it didn't meet the strike price. But at the time I purchased (February) it did seem that gold could be starting a stage 2. I sold in April because it was too dramatic to watch the price of the call fluctuate and the fact that I could loose all the money, even though I know my initial investment was't very much. Selling in April was a good idea since in May gold took a pretty good dive and the price of the call leveled off to/below my original purchase price.
Note that I did also take a shot at a put option, but that failed miserably and I did loose all the money as the option expired worthless. The fees were the same as noted above.
so you made almost 300%. how much would you have made had you bought shares at the same price?
RE: Beginners Questions - diaz - 2016-08-14
Since the amount of money I put in was small I would have made around $80 buying and selling the stock during the same time frame, but I would have to take out $20 total fee for buying and selling so only $60 total return.
RE: Beginners Questions - TraderVic - 2016-08-21
Hi,
i'm new here. I could not see a button for making a New Post so I used the New Reply button.
Anyway, over the years my main difficulty has always been grappling with when to sell. I can spot stage 2 or the start of it at a glance. I usually get into stage 2 moves ok, but usually get unstuck on when it's time to sell. So many times I have given good gains back to the market for failure to sell at the right time. It is a weakness that I openly acknowledge and I am trying to find how to best deal with it
Is this very important aspect covered anywhere in the forum?