TAILIEUCHUNG - The Master Profit Plan Your 5-Step Trading Plan Workbook by Vadym Graifer_7

Tham khảo tài liệu 'the master profit plan your 5-step trading plan workbook by vadym graifer_7', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 176 PART THREE Practical Examples EXAMPLE 8 Finding Entries in a Strong Trend Early in my career I couldn t tell you how many times I got angry at seeing the market rising strongly while I hadn t made one trade or owned anything on the long side. It was truly frustrating. I see this in many traders whom I talk with. The question always seems to be When the stock is rising where should I get in Let me go back several years and give you an answer that I was given by a self-proclaimed stock guru. If the stock is rising just buy it and watch it go higher. You can guess how many times I bought the top. I d need about the fingers and toes of 10 readers of this book to help me count maybe even more. This is clearly not the right answer. We need a specific reason for entry. Many times when stocks are trending all by themselves against the better movement of a market indicator that is stuck it s often difficult to have confidence in such plays. And it s difficult to identify areas for entry because we are not confident when the overall market is narrow. This stems from the idea that we play probabilities and over time our probabilities tell us that trying to play this or that setup hoping we get the one or two that do actually move is usually a losing proposition. Let s take two stocks that were moving on the same day despite NDX inactivity Inrange Technologies INRG and Manugistics Group MANU . I will go over exactly what it is that prevents us from entry as well as where there are higher probability areas for entry should a trend continue. As you can see in Figure EX8a we have an open range indicated by two lines labeled 1 and 2 that fits well into our risk parameters for openbreak plays. However because of the previous day s fades and a very narrow day we wanted to back off open plays. There were 4000 stocks that opened but how many open-break plays did well Not many and with aggression levels relatively low on this particular morning I wasn t looking for things like INRG

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