A method of trading I picked up is to play the hot sectors. This is something DT turned me on to. If the sector up or rallying, find one of the lagers and buy them. If the sector is dieing, the sell the strongest.
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The 3 charts above are from the ag chemicals sector - AGU, CF and MON (you could add TRA). My thought process here is bad earnings from MON pushed the sector down but yesterday there was good news from MOS. So during the MON conference call, I assume the sector would bounce back hard.
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I first tried trading CF. I chased it and chased it and chased it. This I thought was going to be the best bouncer. At point 1 on the chart, it was just breaking out of it small openning morning range. I had an order in at 72.22 - no fill. Then it ran to 72.50, came back to 72.20 and I thought it was in a range of 72.20 to 72.50. Buy it at 72.30 and sell above the break of 72.50. No luck. At point 3 - tried buying at 72.70, then 72.90 at point 4. Ok give up - no luck - go play with something else.
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Later, I see it start to build a big buy point at 74. I am going to lose out on this again. Buy a 1/4 position at 73.95 and a buy stop above 74.00. Get stop on 1/4 position at point 6 - 73.70 but for some reason leave buy stop in. Buy stop gets hit and get stopped again around point 6 again.
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After I created this chart - I went short and covered my earlier losses.
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On the other charts - I missed AGU when I took a break from CF and then screwed up a trade in MON. I bought MON at 88.40 before 11 and then got stopped on it at 88.40 after 11. It runs over 89 minutes later.
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Bottom line - the right stocks, the right ideas - bad execution of those ideas. I missed a lot of money. On top of that, while I was pissing around with my own ideas, MT was making a ton of money with his.
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