Proof of why we are not using fundamentals in the market

[rfdrfd]

Congrats! Keep it up!

Kinda funny, cause what is ccyk really doing? Keep what up? Waiting and hoping?

[ccyk]

Did you at least sell 50% to lock in your gains and move stop to breakeven?

nope. hard to sell 50% when i am still accumulating...

[ccyk]

Kinda funny, cause what is ccyk really doing? Keep what up? Waiting and hoping?

yea lol. I dont really need to do anything, just sit, click refresh and watch lol

I kinna want it to drop next week when I get my fat dividend payment to buy more. but i guess people tap into other funds to buy ahead.

[rfdrfd]

nope. hard to sell 50% when i am still accumulating...

Seriously my friend, please sell 50% and set a stop to breakeven. You won't regret it!!! Nothing wrong with leaving more on the table, but if you lose it all back, and more.... that's a sad day

[rfdrfd]

Are you surprised the markets are dropping these few days? If you are thinking about news and how Ben B talked yesterday, hoping for a QE3, or Draghi this morning giving some amazing plan, then you may be surprised. But if you look at the charts technically, then one should NOT be surprised at all.

Even my very very rough lines drawn here, what happened 2 days ago ? we went very near the top of that line, so if traders are using charts to trade, its TIME TO DROP. And we did. Done. OTA students were all setting up for shorts and today got a nice profit )



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[rfdrfd]

Sorry I didn't have a chance to post this while it was live, here's another trade a few of the OTA traders took today. Green Mountain Coffee announced earnings, happy happy news, price jumped up right into a quality supply zone.

Trade went like this:
1) markets dropping due to 8:30am bad news from Europe dude
2) GMCR price shoots up
3) look to the left, any good supply zones above current price? YES 23.63-23.92
4) at 1pm, price entered this zone, short it inside zone, say 23.73
5) place stop above (using whatever method you learned)
6) current price = 22.70 That's a $1.03 profit per share = 4.3% gain Beauty.

OTA & Technical analysis teachings at work again.



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[ccyk]

Seriously my friend, please sell 50% and set a stop to breakeven. You won't regret it!!! Nothing wrong with leaving more on the table, but if you lose it all back, and more.... that's a sad day

it is quite hard to lose it all back for me...i have a cost base @ about 0.85 vs now trading @1.60, not including my 0.10 dividend.
the thing is this stock was trading @0.09 back in 09, i bought some 200k shares and sold all @ 0.12 to take profit, what a big mistake.
for my current cost base, I started to rebuild my position back @ 0.66 last year and kept adding whenever it dip...

[rfdrfd]

This one I took, drew the Supply zone from the left circle there, and price entered,

I shorted at 15.62, just covered today, 14.83, profits = 0.79 per share. I did 630 shares = $477.80 USD profit (includes commission)

See it doesn't matter what news comes out with, the reason why SDS (the inverse ETF for SPY) went up to that supply zone is because of "bad news" from this Wed (Ben Bernaneke) and Thurs (ECB guy said nothing good). But to me, using TA, price came into the SZ = short. Also SDS is on a LONG term DOWN trend.

Then, today, markets rallied back up (probably SPY hit a demand zone), and so SDS dropped as it was supposed to (according to my supply zone).




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[rfdrfd]

Even when market is up strong today, a quality zone (supply) still works.



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[chevron]

if traders are using charts to trade

If significant numbers of traders are using charts to trade, who is taking the other side of these transactions?

[rfdrfd]

If significant numbers of traders are using charts to trade, who is taking the other side of these transactions?

Novice traders. eg. people who learned how to trade the stock market books, tv, news told us to trade. Buy low, sell high. Short, no such thing. Market only goes up.

Also, keep in mind it is not about the Number of traders, its more about the buying power of those traders. Institutions are the ones with trillions of dollars, market makers, hedge fund managers. They have enough money to move the markets. So when they want to sell 1 billion shares of Apple, they need to get someone else to buy 1 billion shares of Apple. They will do anything they can do make that happen.

Sometimes they'll buy the Apple stock on purpose, price gaps up, all the novices will suddenly jump in to buy thinking oh i'm going to miss this train, while the institutions will now be able to sell their shares to lock in profits. Then Apple stock drops the next day and all those novices are now negative. We call these novice or pro gaps.

Also, if there isn't enough volume exchanging hands, then market makers will step in to make "fake" trades.

[rfdrfd]

Price is now 57.40 and going down more. It may fill the gap to 57 !! Man, wish I took this one.

Even when market is up strong today, a quality zone (supply) still works.



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[rfdrfd]

Its amazing how lines work sometimes, its hard to believe it unless you see it with your own eyes. I roughly drew this Supply zone from May 4, 2012 and its working out almost exactly for the S&P futures. S&P 500 follows its futures:



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[rfdrfd]

For all newbies, you need to read this and all other articles here:

http://lessons.tradingacademy.com/ar...initely-maybe/

[rfdrfd]

Here's a nice basic explanation of Technical analysis.

http://www.stansberryresearch.com/pu...enseGuide.html