Stock Trading System X’s trade for tomorrow, 7–23–2008
Buy MRK (Merck & Co) at the open of the market on 7–23–2008
The developers of the system did tell us to keep our eyes one other stock tomorrow, BAC.
We will follow their instructions and keep an eye on those tomorrow.
Filed under Stock Trading by Tony
Stock Trading System X’s trade for today was to sell BAC at the open.
We took profit on this trade early in the trading session today.
That wraps up Stock Trading System X’s trades for this week.
We will post the trade for Monday, July 21, 2008 prior to that day’s market open.
Have a great weekend.
Filed under Stock Trading by Tony
I am taking a look at a new stock trading system. The trading system developer was kind enough to give me the first signal last night.
I’m going to be following the new system and will keep you posted.
The first trade I have been given was to buy McDonald’s Corp. at today’s open.
Let’s keep an eye on this trade and see how it develops.
Filed under Stock Trading by Tony
On June 13, 2008 I mentioned that we were closer to the yearly lows than the year highs. I also mentioned that I wasn't going to predict that we will soon test the yearly lows. As it turns out we did begin to test the yearly lows.
On June 22, 2008 I stated, "I'm not going to make a prediction of a potential freefall here, but there really isn't much support below where we are now."
Well, today, June 26, 2008 we did actually have a bit of a freefall. The DOW closed down over 3%, 358.41 points. It was a classic dead-low close ( the low of the day and the close of the day were the same).
It will be interesting to see were we go from here.
I'm not going to make a prediction here but at the current price levels it would be easy for there to be further downward movement in the DOW.
Filed under Stock Trading by Tony
In my last entry I stated that the DOW was closer to the yearly lows than the yearly highs. I also stated that I wasn't going to predict if the DOW would test the yearly lows. That was on June 13, 2008 and the DOW closed at 12307.40 On Friday, June 20, 2008 the DOW fell over 220 points to close at 11842.69.
Well it appears that we are back on the lows again for the third time this year.
The DOW has not traveled outside of the range established in the first month of the year. Support and resistance traders won't find much support slightly below these current levels.
I'm not going to make a prediction of a potential freefall here, but there really isn't much support below where we are now.
Filed under Stock Trading by Tony
The 12,800 level on the DOW has held as resistance for most of this year. For the first time since January the DOW closed above 12,800 on 4/18/2008.
After that a small rally ensued that drove the DOW to just beyond the 13,000 mark. At that point the DOW was faced with bumping up against the yearly highs. The highs were tested on several occasions. After the high on 5/19/2008 the DOW has started to move back down towards the yearly lows.
At this time the DOW is just about in the middle of the year's trading range. In fact the DOW is sitting comfortably in an area of some price congestion.
We are closer to the yearly lows than we are the yearly highs. I'm not going to predict that we will test the lows soon so we will just have to wait and see.
Filed under Stock Trading by Tony
There is one simple thing that can make the difference between success and failure in your stock trading. It's not some magical formula or some Holy Grail as many might have you believe.
It's very simple basic rule that every successful trader must follow. That is the rule of risk control. If you do not control your risk you cannot possibly control of your reward.
Risk can be controlled in a number of ways. The first type of risk control is controlling the amount of your account equity that you risk per trade. For instance, if you risk $1000 on a trade and you have an account equity of $100,000 in your risk per trade is 1%. There will be losses in all trading and risking a small amount of your equity per trade can help you survive during strings of losses. In this example, you have effectively reduced your risk of ruin based on the unlikely probability of having 100 losses in a row.
If we take our $100,000 of equity and risk $50,000 per trade we are of course skating on very thin ice. If we experience just two consecutive losses our account equity will be wiped out and will not be able to profit from future trading opportunities. Our initial objective in using risk control is not to have exceptional profitability, but to survive in an ever changing market. Risk control allows us to go through the inevitable string of losses and weather the storm to survive.
Having good risk control measures in place forms the foundation of a good stock trading plan. If you do not have a good risk control plan in place in your options are very simple, simply do not trade. Make a decision now to always keep your risk under control. This one simple thing will save you tons of losses, grief, and frustration in your future trading.
Filed under Stock Trading by Tony
