I violated my own rules and gave FSLR a shot on the short side. Top ticked the sucker - wonderful. Lost 1.26 / share instead of being up well over 5.00 / share
Trading FSLR in the first place. I'm constantly tempted by that stupid stock but it consistently costs me money. Something about the way it trades just doesn't mesh with my trading methods.
I guess if a trader is comfortable trading POT or MDR, FSLR should not be a problem. I thought you might had violated the rule "not to short a strong stock." I was actually listening to Linda Raschke's presentation in MoneyShow.com, titled "Execution Techniques & Trade Management Tools". In it she commented "The wider the stop, the higher the % win rate." In your FSLR case the opposite applies.
would you have a re-entry strategy had you had it as part of your trading method? TLtrader
FSLR and MA are my two biggest intra-day trading losers and I'd bet a lot of it has to do with their wide spread. I do a lot of tape reading, feeling out how a stock is moving and the spread is so much wider on those stocks that I think I'm less successful. FSLR actually made me a ton of money when it was falling in early 08 but that has proven to not be the norm.
As far as not shorting a strong stock - I generally agree with that but I like the volatile stocks like POT, AAPL, that have wide intraday ranges that allow for going long and short possibly multiple times in the same day.
Re-entry strategy - in FSLR's case I went in big early and didn't want to add to it but in a lot of shorts I'll start with 1/4 or 1/2 position, add if it goes a bit against me at first and then take some off as it retreats. That is a more typical strat for me.
5 comments:
Johnson, what rule did you violate? thanks.
TLtrader
Trading FSLR in the first place. I'm constantly tempted by that stupid stock but it consistently costs me money. Something about the way it trades just doesn't mesh with my trading methods.
I guess if a trader is comfortable trading POT or MDR, FSLR should not be a problem. I thought you might had violated the rule "not to short a strong stock." I was actually listening to Linda Raschke's presentation in MoneyShow.com, titled "Execution Techniques & Trade Management Tools". In it she commented "The wider the stop, the higher the % win rate." In your FSLR case the opposite applies.
would you have a re-entry strategy had you had it as part of your trading method?
TLtrader
FSLR and MA are my two biggest intra-day trading losers and I'd bet a lot of it has to do with their wide spread. I do a lot of tape reading, feeling out how a stock is moving and the spread is so much wider on those stocks that I think I'm less successful. FSLR actually made me a ton of money when it was falling in early 08 but that has proven to not be the norm.
As far as not shorting a strong stock - I generally agree with that but I like the volatile stocks like POT, AAPL, that have wide intraday ranges that allow for going long and short possibly multiple times in the same day.
Re-entry strategy - in FSLR's case I went in big early and didn't want to add to it but in a lot of shorts I'll start with 1/4 or 1/2 position, add if it goes a bit against me at first and then take some off as it retreats. That is a more typical strat for me.
Thanks Johnson for sharing your methods.
TLtrader
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