Symbol: JNPR
Type: Short
Entry: The beginning of the 7th bar
Exit: Stop-covered during the 8th bar
Result: Lost -0.59%
With the lowering 5eMA, I thought the inverted hammer on the 6th bar would serve as a sign of reversal. Especially when it failed to close above the Opening High. But it didn't turn out quite as I thought. My Protective Stop was triggered almost immediately before the next bar completed. And it continued to rise without looking back.
Were there any signs at all from the first 6 bars that told me to go Long instead of Short? I thought the upper tails on the 5th band 6th bar are only signs for weakness. Am I wrong? Please drop me a few lines and let me know your thoughts. Thanks!
Tuesday, April 24, 2007
20070424 - JNPR - 15mins - Loss*Paper
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Hi Closet,
ReplyDeleteIf you have been reading my blog lately, you will know that I am doing better in dispensing advice, than I am in actual trading, but here goes.....
The inverted hammer is not confirmed until price breaks below it. In your example, you would have entered a short, below the lowest price of the inverted hammer bar, say .02 below. If that were the case, the trade would never have been triggered.
By the way, how are you deciding on the amount of shares to (paper) trade on each position?
ADD
ADD,
ReplyDeleteThanks for reading up on my old posts, and thanks for your insightful comment. I will certainly keep that in mind!
In regards to the number of shares... since I'm so new to trading, I want to make sure that I can spot the set-up correctly first. Therefore, I'm simply doing (share$/$5000) to get the number of shares. My logic is that if I spot the setup correctly, even if I buy 1 share, my set-up will still work out as expected, and my % gain/loss would still be the same.
Of course, this is not taking commission into consideration at all. My view is that if I can't even catch the correct set-up, entry, & exit, there's no point for me to worry about position sizing, and the cost of commissions, etc.
Right now, at this 'early' stage of my trading career, I can't even correctly spot the movement (up/down) of the share price with great accuracy! Let alone Entry and Exit point.
I'm taking it one step at a time!
Meanwhile, I did follow your postings on a daily basis. And I am aware that you have been hitting some rough patches of late. Since you are trading with real $, I do sincerely hope that things will turn better, quickly, for you! Unfortunately, I'm too much of a 'newbie' to be making any recommendations to you.
Once again, thanks for visiting!