taylorsk
106 posts
msg #90439
- Ignore taylorsk |
3/26/2010 5:59:23 PM
Day trade I think. I am not exactly sure what the definition of scalp is, perhaps this is a bit of a hybrid> Call me what you want I guess!
My filters are done on the dailies of coarse and the goal is to find momentum stocks.
I then switch to 5 minute chats in the morning
I use a 5 min chart and use a 5EMA and a 25 ema.
entry is at the 10 cents above.
If stopped out (10 cents below the prior close) - sell entire position
sell in 2 stages if other
If not profitable:
1 -big red candle from entry through the close in one 5 minute period. - exit 1/2
2- other 1/2 at the stop if it continues against me
If profitable
1 - sell 1/2 when the 5 ema( on the 5 minute chart again) first turns down
2 - sell 2nd 1/2 when either the stock makes a new cycle low, or closes below the 25 ema.
time stop - more analysis needed. expecting it to be either 3 or 4 hours.
those are the rules so far.
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miketranz
962 posts
msg #90455
- Ignore miketranz |
3/27/2010 10:00:10 AM
Taylorsk,you're on the right track.A scalp is a quick day trade where you look to make the most amount of money in the least amount of time,using size,to pick up a tenth or two.The best place to scalp is right off the open.The first 15 min is where the action is.Devise a system on that basis.You can use the first open print as a key place to start.Price either moves up or down from that point.I use ma(9) as a crossover for trade entry on a 3 min chart,either going long or short.Gaps are a good place to look for a scalp trade.The larger the gap the better.Ck out "fading the gap" on here,good info.Remember,the only way to find out what works for you is to make the trades,get the results,get an education.Let me know how you make out.Mike....
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taylorsk
106 posts
msg #90461
- Ignore taylorsk |
3/27/2010 1:28:08 PM
Thanks Mike,
I guess I am hybriding it a bit. call me a scalp/trend day trader!
I actually have used gaps in the past for swing trading. looking for stocks that fill the gap and then looking for a bounce back in the original direction of the gap both short and long.
MSCC was a stock that showed on my momentum filter for yesterday, gapped open well above my 10 cent buy zone and then pulled back close to the close and then moved back in the original direction of the gap. I missed getting in though as price moved above my bid too fast.
I have been doing snag it grabs and notes on my trades and building a folder of these opening trades.
The reason your 10 cent strategy really hit me was looking back at my swing trades. Most of my losers where stocks that did not make a new high after the day they appeared on my momentum filter.
So to me it was an opportunity to look for some criteria to use to eliminate some losers.
Now though I am looking at scalping and trend day trading them instead....
I'll keep working it.
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