Webinar 8PM EST
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We use the live chat to have our discussion
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Hi Nate,
because of the different time zone I am not going to
be able to join the webinar later, but I have some questions and it
would be nice if you can answer them.
Once the trade goes
in your direction or break that line in the sand, you move your stop
loss right? Can you show an example where do you move your stop loss
after the trade goes in your direction?
Can you show on the
chart the difference between grinding, pops and bounces? Sometimes that
confuses me and it would be nice if you just show an example where I
can see the difference.
Thank you a lot.
Silvi
Nate,
On DANG, you were looking for a weak open r/g. At open today it parabolic’d and looked like a decent short opportunity. Did it NOT seem over extended on the daily chart from the scan last night? or were you only interested in the possible long? I was thinking a bit too one sided (long) at the open to take advantage.
Thanks,
1) From what I understand : the level 2 is not always a
100% as telling as say, the ticker tape, and so my question is since
supposing the level 2 is not exactly always accurate (as I understand that
there are ghost orders that one can enter, etc.) – how can one best be sure
that when they take a position that they are effectively taking into account the way the level 2 is reading? OR Does one simply use the chart
pattern ? (i.e prior few day’s high and lows, etc.) for basing risk..also is
there any good in understanding which routers are retail vs institutional, and if
so, how does that affect one’s trade entrance or exit? and which routers do you know are retail and which ones are institutional?
2) ) In regards to ‘parabolic’ moves, as I have watched textbook trading a few times, and reviewed parabolic section, I still am not clear as to what really ‘makes a set up a parabolic’ as opposed to just a trend up? What is it specifically in the gearing and perking aspects of a chart that is in play which gives the criteria of a parabolic? And what is it that you see
in the parabolic description that tells you that that stock is worth keeping an
eye on?
3) As this is my 10th month trading, and I’m glad to be profitable, in regards to the chapter on ‘when its ok to chase’ in txtbook trading.. would you still suggest that cutting losses quickly, using appropriate size for ones pre-defined risk criteria, and not averaging up/down to be adhered to?
4) Understanding that Brent Steenbarger is a great trading coach, do you have any familiarity with Mark Douglas’ the “disciplined trader’ work, or have any thoughts on him..
Thanks Max Kansas City
I have been following the Momentum chat on and off for the last few days – and I see you have mentioned a “stuff” multiple times. I cannot seem to figure out what this means – is it a set-up you are looking for? Is it a specific change in volume? I have watched all of textbook trading and I am on the first chapter of tandem trading – if it is something you cover in tandem trading could you simply mention what chapter it is in? Thank you!
Can you explain Long Trapping.
Re this tweet: http://bit.ly/1HuOMpH
Hey Nate,
1. When a stock start to go parabolic at what point would you cut it off and not play it or would you wait for the bounce to retest the HOD and then size in risking the bounce? Also if you feel like your rushing the play should you just not mess with it and move on to the next stock? ex. PBMD, ISR
2. When it comes to BIG bids/asks on lvl 2 and it fills up one side but the stock doesn’t go the other way what is your thought process on that? For example MNKD was on a downtrend and had 8 MM on the bid side two had over 200k size (which might have been false orders) and only 3 MM on the ask.
What percentage, of the trades you make on momo stocks, do you play both the “front” side of the move (long side- even though its not a “nasdaq textbook long”) and “back” side of the move (short side)?
Sometimes waiting for the drop never comes during the same day (PBMD etc)
1. When you are buying dips or shorting pops how do you know when it’s a full pop or it still has more to go. For example, a stock is trending down and is at $6.40, it pops up to $6.50 and you add more short. What if it pops even higher 30 seconds later to $6.60, do you add there also? Or when you add a pop do you just do one add, and try to make an educated guess on where the top of that pop is. And if you miss the top, no big deal.
2. When you add to a winner it seems like sometimes you add on breakouts above or below resistance/support sometimes. If this is true, how do you add on the break because sometimes they go so fast. Do you market order (this would cause you to get bad entries sometimes)? Or do you not add on the break and maybe just wait for it to pull back to retest breakout area (this would cause you to miss a stock that is moving fast)?
Sometimes I see a trade flash on time and sales (also sometimes shows up briefly on chart) that is way outside the trading range. It seems hit or miss as to whether that lone trade shows up on the chart as a long wick. Just wondering what is going on here. Does it take more than one trade at a price to cause a wick to form? Sometimes I see them immediately prior to a sharp break in price. Are these just “fat finger” screw ups or are they something else?
Couple of DasTrader questions.
Is there any way to access or save prior trade data and chart drawings? This would be a nice feature to add.
Also unless I have missed something the software doesn’t do fib extensions. This would be a nice feature to add as well.
I only mention this as I believe you said in a prior webinar that you have worked with them in the past to get features added.
Nate, could you hit briefly on how you size in to a position and how you place your stops. Today SRPT was around 26.25 and the play was short against 26.50, you entered and then the position ran past .50 to about .80 and then you played back for a retest of .50, it bounced off .50 and you got stopped (not sure where). Which is the original stop point, .50 or .80, or is it something higher than .80? Was the wide leeway on this one just for a starter position only, and would it have been different if you would have been in initially with size? Which point are you basing your position size off of? Do you ever use hard stops or is it more by feel and situation? I’m trying to find the best way to set my stop to give my trades as much room as possible to work (and hate hard stops that get picked) and any help would be appreciated. Thanks!