How To Determine Entry Points In Stocks - Rookie Swing Trader Journal August 3, 2021
How To Determine Entry Points In Stocks?
- Find stocks that have pulled back and made a 3-candle swing point low (meaning it will likely reverse).
Find stocks that have consecutive down days before the swing point low developing.
Find the T-30 tail with increased volume.
Learn more here... https://www.swing-trade-stocks.com/entry-strategy.html
-------
How's my purchasing power today?
- I can buy 3 stocks using Moomoo.
- ETH-USD $2490 (binance.sg)
- Buy at $2320
- YF Watch list. LYFT. Buy at $55.20. Done.
- In the YF news. None.
- Related YF trending tickers. None.
- Related YF market movers. None.
- Skipped.
- 12 stuck stocks at FSMone. See Yahoo Finance.
- AAL (mm kdj rsi). Bought $21.30. Stop at $19.60. Target $24.
- GNUS (yf bbl to). Bought (FSMone) $1.65. Target $1.82.
- TNXP (no indicators, gap down). Bought $0.75. Target $0.83.
- MOOMOO BUY SELL SIGNALS: (retired strategy)
- Started on 7 June 2021.
- Scan Trade Heat list to look for 3 signals.
- 1st signal - Buy on KDJ Golden Crossing
- 2nd signal - Confirm uptrend with SAR and MA.
- 3rd signal - Double confirm with Oversold Analyses.
- Complement with Bollinger Band Breakout strategy.
- Sell on opposite signals.
- For the charts... https://finance.yahoo.com/
- For the analysis... https://tradertv.live/
- For all in one... https://j.moomoo.com/005lWj
- Buy Market price when I see a signal. Don't buy at a Limit price.
- Buy on dip from late April to early May 2021.
- Sell in May and go away. Reinvest in November.
- August is a particularly strong month, September is an especially bad month for stocks.
- 10% strategy is not efficient. 5% profit is faster to reach. Hence Change to >$100 target strategy instead.
- Buy quickly once I identify a stock to buy.
- Queue GTD for every buys and sells.
- Missed SEAC spike 3 times within a week. Dropped to negative immediately after the spike. Lesson - Queue up to sell using GTD. Forget about using alerts.
- Premarket moves are irrelevant and distracting. Stop tracking them.
- Sell immediately if price spikes on news.
- Remove emotion from the equation.
- Sell. Don't hold. Don't be greedy.
- Sell when the target is hit. Don't hold.
- I need a cut-loss strategy.
- If I don't sell, I will have no capital to buy.
- Locking the profits at hand is better than risking the losing direction.
- How to recover from stock market losses? How to recover my money lost? How to win my trading losses back?
- The best way to recover after losing money in the stock market is to invest again.
I am studying swing trading from here... https://www.swing-trade-stocks.com/swing-trading-basics.html
This is my new strategy from 27 July 2021.
- 4 Stages - There are 4 stock market stages. Bottom, uptrend, top, and downtrend
- 5 Waves - There are 5 uptrend Elliott waves and 3 correction waves. Buy on wave 2. Hold on Wave 3. Sell on wave 4.
- Trends - Trade trending stocks. Characterized by higher highs and higher lows.
- Identify a new trend using Trader Vic's 3-step method. 1. A trendline is broken. 2. There is a retest and failure. 3. Price falls below the prior low. Use the 10 (SMA) and 30 (EMA) period moving average crossover scan for step 2. Step 3 confirms trend change. Does not work in a sideways trading range.
- Bulls and Bear - The 200 SMA is used to separate bull territory from bear territory.
- Support and Resistance - Stocks do not find support or run into resistance on moving averages. Stocks to reverse that price level.
- The more times a stock hits a support or resistance area the weaker it becomes (and the possibility of a breakout increases).
- Buy at support. Sell at resistance.
- Volume? Not important?
- THERE IS NOTHING ON A CHART THAT MATTERS MORE THAN PRICE. EVERYTHING ELSE IS SECONDARY.
- Candlesticks - Stocks tend to move in the direction of wide-range candles. Narrow range candles imply low volatility. Enter a stock in periods of low volatility and exit a stock in periods of high volatility.
- Candlestick reversal patterns... https://www.swing-trade-stocks.com/candlestick-patterns.html
- Reading stock charts.
- What stage is this stock in?
- Is this stock in an uptrend or a downtrend?
- Is the stock at the beginning, middle, or end of the trend?
- How strong is the trend?
- Where are the trend lines?
- What wave is this stock in?
- What do the moving averages tell me?
- Was there a breakout recently?
- Is the chart "smooth" or "sloppy"?
- Are there any chart patterns?
- Are there wide-range candles in the direction of the trend?
- Are there any gaps in the direction of the trend?
- Are professionals selling strengths or buying weaknesses?
- Where are the support and resistance areas?
- Is this stock at a Fibonacci level?
- What does volume tell me?
What technical indicators are best? Stop the madness! The only thing you need is an understanding of price action. The main thing that you are trying to figure out on a chart is the psychology of other traders. Look for support and resistance, trend lines, and emotional extremes.
How to Decide When to Buy A Stock? Buying weakness is the art of buying pullbacks. Stocks that are in uptrends will pull back offering a low-risk buying opportunity... Where do you buy a pullback? You buy them in the Traders Action Zone (TAZ)... the trader's action zone is the area in between the 10 SMA and 30 EMA...When a stock pulls back into this zone, look to the left to identify support and resistance, trend lines, candlestick patterns, etc. You are looking for multiple signals all pointing in the same direction... After a change in trend when the 10 SMA crosses the 30 EMA, look for an entry on the first pullback when the stock gets into the TAZ... Do not buy breakouts. Wait for pullbacks.
Find stocks that have pulled back and made a 3-candle swing point low (meaning it will likely reverse).
Find stocks that have consecutive down days before the swing point low developing.
Find the T-30 tail with increased volume.
- To be continued... https://www.swing-trade-stocks.com/swing-trading-basics.html
Comments