Daytrading with Consensus

[Ares]

Premarket most active: SUNW,TASR,LVLT,AVNX,CYTR,BRKR

In at LVLT:$6.70
Out LVLT at: $6.73

In BRKR: $9.21
Out BRKR:$9.31

In CYTR: $4.50
Out CYTR:$4.81

I've reached my goal for the day.
Time to have a break and spend some quality time with my family.
We're picking our grade 1 son at school and go out for lunch.
Good luck trading.

[Ares]

Premarket most active: SUNW,CHTR,NICH,AVZA,STTS,CNLG,EPIX

CYTR was not part of the premarket most active but is a stock that I've been following for days now.

In CYTR: 3.56
Out CYTR: 3.60
Profit: 0.04
Went in using the momentum low strategy, but when I saw weakness while recovering, I got out.
Set my alert  to warn me if it gets close to my perceived support at 4.10.

In CNLG:  3.31
Out CNLG:3.95
Profit: 0.64
Went in CNLG with momentum but didn't look at Time and Sales. I went in again mainly based on charts.

In CYTR: 4.14
Out CYTR: 4.36
Profit:0.22
Went in CYTR using the momentum low strategy(tanking stock for the day but has a longer term uptrend - above the 200ma and 50 ma of the weekly chart)
While shopping around for trading candidates (I was click,clicking symbols), I saw an opportunity at CYTR. 
It had a momentum low of 4.11(0.01 above my perceived support of 4.10 earlier). I forgot the rule of round numbers.
I had to wait for strength before getting in. When it made a higher high, I got in at 4.14. After I got in, I saw blocks coming in.
I got comfortable and switched back to CNLG where it had a potential of tanking. I divided my attention and was not able to keep track on the time and sales prints.
I saw the hourly 200ma as potential resistance. I was not able to get out at 4.47(the hourly 200ma resistance).
I got out at 4.36 instead.

In CNLG: 3.49
Out CNLG: 3.51
Profit: 0.02
Tried to catch a ride on a small block trade (less than 25,000) but when I saw a counter block trade and the test of the previous resistance of 3.47 failed, I got out.

In CYTR: 4.49
Out CYTR:4.57
Profit: 0.08
Went in CYTR because it was showing strength again. The hourly chart made a higher high, went above the 200ma, and broke the 4.47 resistance.
It looked like it was still going higher but I had to exit my position because my I had to pick my son up from school.
He gets out at 12pm our time (which is 3pmET - the last hour of trading!)
Oh well, I have to do what I have to do. I had to make a decision on my priorities.
The next target resistance was the hourly 50ma. Sure enough it went there.
I still feel I had a good trade. It's not bad to take profits while it's there.

I just took a look at the minute chart of CNLG (6:50am my time on Saturday, February 24, 2007)
It did tank. It blew my 3.15 perceived support.
What I see here though is a true breakdown on the minute chart.
It broke down on a tight bollinger band with big volume.
The recovery rally is way below the BB.
This reminds me that perceived supports are just that - perceived.
We still have to wait for confirmation if there really is support in there.
Based on the hourly chart, my next perceived support is $2.37

[Ares]

Would someone please show me on how to remove the poll?
I already went to the help section under posting.
Is there another place that I should check out?

[Ares]

My thanks goes to Lucas Scott.

It is for showing me how to change my username.
Your rating should be at 155 now.
Thanks again,

Ares

[Ares]

I'm revising my trading plan starting today (February 26, 2007)

1) use 1000 shares for stocks under $5 with a  10 cents risk : 25 cents reward ratio

2) Use 500 shares for stocks under $10 but above $5 with a 20 cents risk:20 cents reward ratio.

First choice: Daytrade with Consensus.

Second choice: Bottom Fish a long term uptrending stock that has tanked for the day.

The reason I'm revising:( A result of new information and reminders that I have acquired recently from 3SOF).

1) To maximixe the use of a $5000 capital.
2) As long as I still go with the longer trend, I feel more comfortable bottom fishing.
3) My reasoning is if there is not enough volume to push the stock up past the breakout point for the day, most likely, it will come down.
4) When it comes down, as long as it has enough volatility and volume, most likely, a lot of bulls(long term) will find it cheaper and start buying.
5) It's mainly a matter of determining proper support and resistance.

"Buy high to sell higher or buy low to sell high."

[Ares]

premarket most active: SUNW,CNLG,CYTR,CHTR,STTS,LVLT,AIXG.

IONA will be part of my stalk list for today just because I like the chart set up.
Even though it  has not reached 15,000 shares by 6:15 am (9:1am ET)

[Ares]

Why didn't I sell IONA at $6.34 yesterday while the bid was still thick?

I was too optimistic with:
1 The Ascending Triangle Pattern Breakout
2 I know that there are at least 3 schools following this stock

IONA gave me a lot of chances to get out with a bigger profit but I decided to ride the pullback for the day.

1 I saw the buying volume drying up
2 The bid was thickening at around 10:34am ET
3 The minute chart opened and closed below the 8ma
4 The 6.20 support was broken
5 The 6.05 support was touched a few times
6 I finally initiated an exit when I saw a block selling to the bid at 6.05

I ended up exiting at 6.08 instead of 6.34.

In IONA:5.96
Out IONA: 6.08
Profit: 0.12 (instead of 0.38)

[Ares]

Premarket most active: BRCD,SUNW,LVLT,OSCI,CPSL,AMCC,CHTR,AVNX

I would like to follow up on IONA today too.

[rurouni]

Hi Ares,

Greetings from T.O.  I have been reading some of your post and I just want to wish you good luck on your trades and great posts!  It is always refreshing to read about one's trading journal.

I don't mean to jack your thread but I was wondering if you know the answer in regards to daytrading rules for Canadians (if any).

I read the following rule for PDT:

Pattern Day Trader: someone who effects 4 or more Day Trades within a 5 business day period. A trader who executes more than 4 day trades in this time is deemed to be exhibiting a ‘pattern’ of day trading and is thereafter subject to the PDT restrictions.

In order to day trade, the account must have at least 25,000 USD in equity, where equity includes cash and stock, but does not include option or warrant value.

The NYSE regulations state that if an account with less than 25,000 USD is flagged as a day trading account, the account must be frozen to prevent additional trades for a period of 90 days. IB has created algorithms to prevent small accounts from being flagged as day trading accounts, to avoid triggering the 90 day freeze. IB implements this by prohibiting the 4th opening transaction within 5 days if the account has less than 25,000 USD in equity.

http://www.interactivebrokers.com/en/trading/marginRequirements/patternDayTraders.php?ib_entity=llc

Does the above rule apply only to U.S citizens or does it apply to EVERYONE; ANYONE; ANYWHERE trading U.S stocks?

Thanks

[Ares]

Hi rurouni,

I verified the pattern day trading rule with tradefreedom yesterday.
I inquired about it because I saw the requirements at Interactive brokers while checking it out.
Jack at Tradefreedom  told me that I don't need to have $25,000 in the account to daytrade.

Ares

[rurouni]

Hi rurouni,

I verified the pattern day trading rule with tradefreedom yesterday.
I inquired about it because I saw the requirements at Interactive brokers while checking it out.
Jack at Tradefreedom  told me that I don't need to have $25,000 in the account to daytrade.

Ares

Thanks for the answer Ares.  I also read somewhere that a PDT are limited to make a certain number of trades per week.  Not sure where I got this from.

[Ares]

Yesterday's Lesson:

In BRCD:9.25
Out BRCD:9.44
Profit:0.19
This was an ok trade


In BRCD:9.25
Out BRCD:9.27
Profit:0.02
I had to do some head scratching here.
I must have missed something with this trade.
I saw at least 300,000 shares on the green at $9.36 go by at the time and sales.
The price went down. I was thinking that probably the market maker that took the order(shorted 300,000 shares in order to service the client who bought 300,000 at $9.36 which was reflected as green on the time and sales) was taking the price down to be able to buy to cover and make a profit.
After I got in,
1) I noticed that the previous candle(the candle where I used the high as an indicator to get in) of the 1 minute chart was outside the B- but the volume was lower than the candle prior to that.
2) the recovery rally didn't touch or exceed the BB
I initiated an exit and was able to get out at 9.27
I'm not sure how that big buyer felt but I had to cut my loss when my indicators tell me to.
I must have missed the counter trades against that block that was at least 300,000 at $9.36


In BRCD:9.15
Out BRCD:9.24
Tried to Bottom fish this long term uptrending stock.
From a high of 9.27(outside the B+ on the 1 minute chart) to a low 0f 9.13(outside the B- of the 1 minute chart).
When I saw that the angle of attack was steep, I waited for a higher high and placed a bid on the previous high.
The candle pierced B- on low volume and ended the move with  larger volume.
I was concerned after I got in because the ending volume was not large enough( I want to see a panic selling volume).
The recovery rally also didn't touch or exceed the BB.
I was watching 9.14 to be the price low(low inside the Bollinger Band with lower volume compared to the momentum low)
9.27 was my perceived resistance.
The price climbed towards it but  kept on stalling.
I thought that 9.24 was pretty close to it already and if I get out here it will be on a +.
I really wanted for the price to pass 9.24 but when the bid and ask locked after the dip, I got out.

While having my haircut (which was supposed to have been done the previous day) I heard on the news that the market was having a sell off.
This is the main reason I don't like holding overnight anymore.

I wanted to get home right away to follow up on BRCD.
I was thinking that if the bulls panic and the price ends up hitting a strong support, a potential short squeeze would be there.

Looking at the hourly chart of BRCD right now(5:14am on February 28,2007)
It had a nice bounce at the 50ma.

I'm still bugged with that block trade.
Now I'm thinking, if a pension fund or another large institution wants to get in a stock, most likely they can't or will not buy all their quota all in one day otherwise the stock price will be driven way up right away.

BRCD just made a higher high (previous hour's high is 9.12)  on the hourly chart at premarket(5:23am)

Yesterday's close was at 9.13 on large volume with a spinning top.
If this opens above 9.13, this would be the first indicator of a continuation.

Looking at the daily chart, it looks like there was a selling volume capitualtion on August 8, 2006 with a low of 4.91

Nov. 22, 2006 was a gap up outside the bollinger band.

Yesterday (February 27, 2007) was another gap up outside the bollinger band - this time with increased volume.

When I arrived home from my haircut yesterday, I turned on the computer right away.
Just to see that I missed the momentum low entry.

I determined $8.90(3:03ET) was the momentum low.
My entry would have been 8.93 (the previous high after the minute chart created a new high)

[Ares]

premarket most active:SUNW,LVLT,CHTR,BRCD,ARMHY,STTS,CYTR,XOMA,MAMA

Stalk list: IONA

[Ares]

In BRCD 9.25
Out BRCD 9.26
Profit: 0.01
Got fooled joining that block trade.
Jumping in with block trades doesn't seem to be working here with this stock.
Jumped in with the _ _ _ _ money (didn't wait until they got flushed out).

Resistance should be at 9.12 right now
next buy target is 8.60

Just reminding myself that price normally goes down faster than it goes up.

IONA is so close to my buy target of 5.48.
The problem is getting in and out for the day because the volume is low(so far, less than 100,000.

12:45ET BRCD price hovering at $9.12

This may have a tweezer creating 2 lows at 8.90 on the daily chart.
Looks like it used the hourly 50ma and yesterday's low as support.

I'm waiting to get in when the multiple timeframes are pointing up or if it tanks close to the 8.60 support
previous hour's high: 9.20
previous hour's low: 9.02

Will the $9.12 support(previous resistance) hold this time?

As of 1pm ET:
previous hour's high: 9.16
previous hour's low:9.04

Hourly chart still below the 8ma but
the 15 minute chart shows price closed above the 8ma
will the next candle open and close above the 15 minute chart's 8ma soon?
watching if the INET big seller gets done

[pnguyen652004]

Sorry for this question but i didn't find out the info.  Just want to know how you can transfer your partly money from your tradefree dom account out and how much they will charge for each trx?

Thanks,