3SOF

My wife almost left me because she said I was obsessed with stocks.
I called it determination to learn to provide a better life for my family.
She's right though in telling me to keep a balance.

 Sounds like you've been doing you're homework and the learning never quits.
My wife tells me I'm obsessed with stock trading also. She tried it for a while but didn't have the patience for it so she quit.
Have a great weekend. Monday is a holiday ,,Market is closed

I used to be so upset with my wife when she said, " Jege, you're obsessed. I don't want to talk to you about stocks until you get your priorities straight."
I took that as she she was leaving me all alone to learn stocks all by myself instead of the two of us. In my mind, she was supposed to be the one trading and I'm supposed to provide play money from my full time work.
Later, I realized that she was still supportive of me and that we will still be working towards our goal. It's just she wants me to spend time with our family too.
I lived the anticipated future but missed out on the present.

Looking back at what I did wrong.
After we finished the course at TMTT I was so excited to trade stocks.
We were told to paper trade at least 6 months (I didn't)
I went ahead and opened an account at TD Waterhouse.
Bought BLDP on good news (at a high price) about 8.65 just to see it go down.
I was supposed to cut my loss but ended up holding it.
It went below $5 few months later.
I became frustrated.
Few years later, I got lucky (for gambling) and exited BLDP close to $12.
Trade Freedom was recommended to me by my co-worker.
Found out about Cybertrading University and saw an opportunity to make quick profits.
I would have, if I followed the rules.
But later realized that I lacked self control to exit when I'm wrong.
I was too proud to admit I made a bad decision and held on to a loser.
While on the Yahoo message board, I saw Livelife's recommendation to check out 3SOF (about 2005).
I checked it out but didn't put much attention to it.
I looked at it as just one of those advertisements.
That's when I chose Eatinfolikefish.
It means Eat the meat (good information) and spit out the bones (bad information).
I wished that I chose a different username though.
I didn't know that after David gave me an invitation to check out the Premium Service, I will be hanging around a lot in here.
It made a lot of sense.
Diversified stocks with good fundamentals, good entry, and good money management.
Terliso's 3 magic lines and the G pattern to STEPS comes to my mind as just one of the tools that the 3SOF program may be using to pick stocks that will be included in it's portfolio ( and there are lots of other ideas being brainstormed in here).

What I learned from my latest trade.
I tried to focus and get to know CYTR.
I observed how the level 2 looked like and how the Market Makers moved in relation to the price movement.
I looked up who the Dominant Market Maker could be and was able to confirm by looking at level 2.
The initial plan was go with consensus and ride with momentum.
When it didn't happen, I went with the alternative.
Waited for the stock to tank and jumped in when it found support (hit or close to suspected support)
In my mind, this stock is in an overall uptrend.
I'll get in at the lowest possible price since it has volatility and volume but still protect myself with a stop loss point.
It makes me wonder if I should add this as Plan E.

Proposed Plan E:
Pre market most active
Uptrending in the larger time frame (Weekly or Daily chart showing price trading above 200 and 50 ma)
Positive net price
Traded at least 25 cents above the open
Volume at least 100,000
Go in with momentum
If momentum doesn't happen [ we have to decide whether to cut our loss (as a daytrader) or count on the longer term trend (as a long term holder)].
Wait for stock to tank (Market Maker possibly shaking out weak hands).
When stock tanks, wait for selling volume capitulation for the day.
Buy close to support (protecting ourselves with a stop loss point and sticking to it)
Hopefully the stock is taken back into an uptrend for long term holders.
Even better if a short squeeze is triggered and the stock is taken to the next level.

I don't look at myself much of a writer but my goodness after reviewing my notes in this thread...
I'm thinking, I should get a publisher soon
Who knows, it may end up in Oprah's book club one day.
Gotta get ready for church now.

Thanks to whoever took the time to answer the poll.
I would like to see a lot of numbers in there to make use of the power of consensus(and see consensus from brilliant minds of 3SOF members).
After reading two schools of thought I was just reminded that Big players do gun the stock in order to accomplish their goal.
If you are short, gotta watch out for that trigger just above the previous day's high
I was also reminded that:
1 when the market opens, the previous day's high and low (if price opens within) is the most recent battle of the bulls and bears to protect support and resistance that a lot of people look at.
2 to choose the path of least resistance
3 to keep in mind Newton's Law of motion
4 and to be aware of mark ups (artificial gaps)

Momentum (acceleration of a stock's price) = Volume(net force)/ Float(object's mass)

Normally, momentum would carry the price in the same direction unless an outside force stops it (Market Maker playing around until other Market Makers gun it with block trades  or it gets hit with the combined volume of retail investors buying at the same time.)

Premarket most active: CYTR,LVLT,SUNW

What I learned from my latest trade.
In CYTR at:    $4.25
Out CYTR at: $4.84
Profit: 0.59 x 1000 shares = $590 minus commissions of $20 = $570
(I'm not planning to include this in the running total because I used a strategy that has not been included in the plan yet - maybe Plan F?)

I felt that I should have hanged on to $3.82 and held overnight (but that would break my daytrading rule)(I guess I'll have to see how it will turn out at 100 shares long term)
Today's premarket price went as high as $5.05 so far
It really makes a difference concentrating and getting to know one stock at a time
Thanks again to Holygrale for reminding me.
I jumped in at 4.25 because that was my initial alert the previous day.
When it was confirmed by a block trade, I went for it.

Proposed Plan D:
Ride with a block trade (or buy lower as soon as possible - waiting too long could be countered by another block trade in the opposing direction) on a stock that is being closely monitored.

Premarket most active: TASR,CYTR,STTS,ONT,STEC,LVLT,TSTC

Quote from: Eatinfolikefish on February 21, 2007, 08:35:36 AM
What I learned from my latest trade.
In CYTR at:    $4.25
Out CYTR at: $4.84
Profit: 0.59 x 1000 shares = $590 minus commissions of $20 = $570
(I'm not planning to include this in the running total because I used a strategy that has not been included in the plan yet - maybe Plan F?)

I felt that I should have hanged on to $3.82 and held overnight (but that would break my daytrading rule)(I guess I'll have to see how it will turn out at 100 shares long term)
Today's premarket price went as high as $5.05 so far
It really makes a difference concentrating and getting to know one stock at a time
Thanks again to Holygrale for reminding me.
I jumped in at 4.25 because that was my initial alert the previous day.
When it was confirmed by a block trade, I went for it.

Proposed Plan D:
Ride with a block trade (or buy lower as soon as possible - waiting too long could be countered by another block trade in the opposing direction) on a stock that is being closely monitored.

Great trade,,applause

Hi Wrangler,
Thanks again for your support.
I'm starting to really like you now.
Looking forward for more comments from you.
This morning I woke up at 2:59am and went back to sleep
Woke up again at 4:04am and tried going back to sleep... not succecssful this time.
I decided to turn on the computer at 4:25am since I'm all wired up.
I'll just catch a nap later on today.
I've been breaking my trading plan lately of  turning on the computer at 6:00am and to turn it off by 8:00am.
I plan to just work 2 hours a day and make my $250 maybe 3 hours but the 3rd hour should be at 12pm to 1pm

Yesterday's trade:

In CYTR at: $4.95
Out CYTR at: $5.47
Profit: 0.52 x 1000 shares = $520 (minus $20 commissions) = $500

(I'm not planning to include this in the running total again because this is another strategy)

What I learned from yesterday's trade.
(My notes are at the CYTR thread at Stock Picking)
1 It's ok to take profits while it's there
2 I reached my goal of $250, anything more than that is a bonus.
3 Do not ignore what the message market makers are sending.
4 Check the charts, INET book, Time and Sales and compare with the message being sent at Level 2.
5 Take a break once the goal is reached - I stayed in the computer way longer than I should have. After taking a profit, I kept on analyzing the stock and lost track of time. The nice level 2 set up between 6:35am to 8:00am does not have the same result with those "idle hours".
6 I was waiting for the stock to tank to get in again (this strategy takes a lot of time staring at the computer -especially on an uptrending stock)
7 It's probably better to just let the "Big Boy's or Girls" figure out the bottom and ride with them.

I made a profit on CYTR on 3 straight trading days!
I wonder if I should push it or move on to another stock.

The dilemma: Getting to know the stock better or "air may come in my head."
A recap of the CYTR trade:

In: 4.82 Out:4.08
In: 4.25 Out 4.84
In: 4.95  Out 5.47

So far, I bought high and sold higher (except for 4.82)

Thanks 
Messages that Market makers are sending. Are you refering to the messages sent when shares are somewhere between 100 and 500. Do you get level two quotes from your trading platform or from another source.
Send some lessons from last post refering to this and block trades. Will be interesting to read.
3 Do not ignore what the message market makers are sending.
4 Check the charts, INET book, Time and Sales and compare with the message being sent at Level 2.
Also if the stock world is what's keeping you awake. I would suggest taking a break.

Hi Wrangler,
I get Level 2 quotes from Tradefreedom (currently our direct access broker)
I'm currently checking out Interactive Brokers and see what they have to offer.
The messages I'm referring to is how the Market Makers set up level 2.
The strategy I used here is a combination of what I learned from Cybertrading University, the book I read by Charles Kim called Swift Trader, and the Market Maker's Edge by Josh Lukeman.
I'm not sure if I could discuss those details here in the 3SOF.
I may be infringing on the rights of the school.
What I suggest is, read those books first.
If you want to go further, check out Cybertrading University - It's an on-line class.
You are right, it's the stock world that's keeping me awake.
I've been working on taking a break for at least 3 years now.
Before, my wife told me I was obsessed with stocks.
Yesterday, she told me I was obsessed with 3SOF.
I guess my main problem is when something interest me - I get challenged and really go for it.
Probably this part I could share since it seems more than 1 school teaches it.
When Market Makers show size in the Ask (10,000 or more) they're either trying to prevent the stock from spiking or to scare traders to sell at the Bid where they are waiting with 100 shares that is being refreshed.

Ares

Price and Volume doesn't lie.
Charts reflect them but Time and Sales gives you the details.
The bid and ask (number of shares and price) may not show on level 2 but Time and Sales should print the trade.