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Chronicles of an Equities Daytrader

  • #1
  • First Post: Feb 10, 2012 3:11pm Feb 10, 2012 3:11pm
Trading Concept:


I am an equities day trader, who day trades swing trading ideas. In my trading I use technical, fundamental and quantitative tools to determine the direction of price and order flow. The market analysis in which I use to formulate my game plan for the trading day mainly evolves around my ability to determine the market environment. The market moves through cycles and determining where it is at any given moment in that cycle is critical to trading successfully.


My edge lies in recognizing the market environment and then recognizing the environment of the stocks in my list followed by picking the best stock setups that fit my trading system. I day trade and sometimes swing trade stocks from all the sectors and major industries, trading the sectors/stocks in play. I place preparation above any other trait a day trader should possess. I plan rigorously, taking all the elements that could move price into perspective. Doing my homework prior to the market open by at least 2 hours is crucial; once my game plan is formulated, I stick to it by trading nothing else. Discipline and preparation is what separates the professionals from the amateurs.



My objective is to continuously evolve through education by exploring all aspects of the financial markets and by pushing myself out of my comfort zone in all the aspects that are concerned with trading. This thread will serve as my personal journal of my journy where I will post my ideas prior to the NYSE/NASDAQ open, after the close or while the market is open. I will only trade stocks in my gameplan for the day that can be found at my blog here , I post my gameplan prior to the open at 9:30 EST. My other thread where I posted some of my ideas could be found here.


Everyone has their niche in the market, equities is mine. Everyone else daytrading equities or wishes to comment on my posts is welcome
  • #2
  • Feb 19, 2012 9:02am Feb 19, 2012 9:02am
Quoting split_unit
Trading Concept:


My objective is to continuously evolve through education by exploring all aspects of the financial markets and by pushing myself out of my comfort zone in all the aspects that are concerned with trading.
Would be very grateful if you could kindly clarify the blue-tinted words. What could these 'comfort zones' be - and how does a trader overcome them? How does he know he is sheltering in a comfort zone?
  • #3
  • Feb 21, 2012 7:51pm Feb 21, 2012 7:51pm
waiting for more update..

do you only trade US stocks?
  • #4
  • Feb 23, 2012 4:06am Feb 23, 2012 4:06am
Quoting devshishya
Would be very grateful if you could kindly clarify the blue-tinted words. What could these 'comfort zones' be - and how does a trader overcome them? How does he know he is sheltering in a comfort zone?
 The answer to your question is pretty vast, however, I will try to replay to the best of my ability. For you to grow you need to push yourself outside of your comfort level, two examples could be risk management and preparation routine. When a trader achieves a certain level of mastery he tends to become comfortable with those parameters. In order for him to grow and reach the next level, this trader is going to have to raise his size. This transition won't be comfortable at first, but after a while this new size will be normal and comfortable.

Professional traders everywhere also plan rigorously, constructing a routine in the process. Suppose that my daily schedule allows me to prepare for 2 hours a day, for me to move to the next level I would have to plan for more than two hours a day and take some time out of my TV time. I might not be comfortable with this at the beginning as I would be getting out of my comfort zone to achieve my goals. Preparation is an art on its own, taking time to prepare while doing it ineffectively would mean nothing, thats why its important to structure your ''informational flow'' and how to conduct your analysis.

A more detailed explanation can be found in Dr.Steenbargers ''Enhancing Traders Performance'' book. Heres an abstract from the book:

Your growth always lies on the other side of your discomfort. Whether it's in the weight room or in career decisions, you'll never develop yourself by staying in your comfort zone. People don't become old when they reach a certain birthday; they become old when they decide to live life without crossing that line of discomfort.
  • #5
  • Feb 23, 2012 4:08am Feb 23, 2012 4:08am
Quoting ccreative
waiting for more update..

do you only trade US stocks?
Hi ccreative,

Yes I only trade US equities at this point. US equities is my nitch and its what I trade best.
  • #6
  • Mar 11, 2012 1:09pm Mar 11, 2012 1:09pm
The XLF (Financials ETF) is set to breakdown and outperform the SPY (S&P 500 ETF), how? Check out the chart below. What does this mean? It means that this market is about to get a major boost should the financial sector join the party. This chart is definitely in on my radar, and can be found at stockcharts.com.
Attached Image (click to enlarge)
Click to Enlarge Name: 2012-03-11_1743_XLF_Outperformance.png Size: 282 KB
  • #7
  • Mar 11, 2012 1:21pm Mar 11, 2012 1:21pm
Heres one stock that I am watching at the moment in the XLF sector.Another thing to add about the sector is that its severly undervalued especially when it comes to price over book. Citigroup is currently worth $60.81 in its book/share value which is almost double the stock price.
Attached Image (click to enlarge)
Click to Enlarge Name: 2012-03-11_2214_C.png Size: 271 KB
  • #8
  • Mar 22, 2012 10:08pm Mar 22, 2012 10:08pm
Split,
What was the all time low of Citigroup?

Are you still following this?
X

Quoting split_unit
Heres one stock that I am watching at the moment in the XLF sector.Another thing to add about the sector is that its severly undervalued especially when it comes to price over book. Citigroup is currently worth $60.81 in its book/share value which is almost double the stock price.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #9
  • Edited Mar 24, 2012 2:18am Mar 23, 2012 4:55am | Edited Mar 24, 2012 2:18am
Quoting XTrade
Split,
What was the all time low of Citigroup?

Are you still following this?
X
Going back to 2002 the lowest price that Citigroup hit was $9.70 which was during the 2008 financial crisis. I am definitely still following this, below I have two charts of the SPY (S&P 500 ETF) vs the XLF (Financial Sector ETF) and another chart of Citigroup vs the XLF sector.

What is notable on the charts is that the XLF is stronger than the SPY and that Citigroup is stronger than the XLF and thats bullish. I had a long on my daily gameplan to be long Citigroup after it dipped for 2 days @36.50. This play in Citigroup is just one play, I have several each day.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2012-03-23_1342_C.jpg Size: 96 KB
Click to Enlarge Name: 2012-03-23_1347_SPY_XLF.png Size: 105 KB
Click to Enlarge Name: 2012-03-23_1348_C_XLF.png Size: 108 KB
  • #10
  • Mar 23, 2012 8:53pm Mar 23, 2012 8:53pm
I am not an equities trader and wont pretend to be,
yet I did see a signal at that low, and I believe there was another division of citi that went to 1-3$ range. Could be wrong.

Yet, thanks for introducing us to these charts and please continue to post on a more regular basis. If you feel so obliged.

X
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #11
  • Mar 24, 2012 2:33am Mar 24, 2012 2:33am
Quoting XTrade
I am not an equities trader and wont pretend to be,
yet I did see a signal at that low, and I believe there was another division of citi that went to 1-3$ range. Could be wrong.

Yet, thanks for introducing us to these charts and please continue to post on a more regular basis. If you feel so obliged.

X
Your welcome, I feel indebted to this community, its where I started my journey 5 years ago and got pointed to professional equity traders who taught me what i know. The least I can do is open peoples eyes that other opportunities exist, thats my motive. Your response is encouraging it tells me that at least some one read and understood what I wrote and for that I thank you

P.S. I don't follow Citigroup on its own, however, I think the stock was diluted back then.
  • #12
  • Mar 24, 2012 8:03am Mar 24, 2012 8:03am
Here are two industries on my radar for next week. Stocks in these two sectors might get strength next week if the technical patterns hold.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2012-03-24_1654_IBB.jpg Size: 164 KB
Click to Enlarge Name: 2012-03-23_1328_SMH.jpg Size: 168 KB
  • #13
  • Mar 24, 2012 11:55pm Mar 24, 2012 11:55pm
Interesting how in the second chart the volume completely drops off and then the stock pops up. Still high looks like it may make some support and continue.

Yet, I wonder what a resurgence in volume would do? Drag down? on shorts?
Maybe....
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #14
  • Mar 25, 2012 1:57am Mar 25, 2012 1:57am
Quoting XTrade
Interesting how in the second chart the volume completely drops off and then the stock pops up. Still high looks like it may make some support and continue.

Yet, I wonder what a resurgence in volume would do? Drag down? on shorts?
Maybe....
Looking at the weekly chart by going back to 2002, volume over the past couple of months has been historically very low. I dont really know what to make out of it, a number of assumptions could be made and my assumption is that its bullish. If you look at the SMH components here you will find that most of these stocks are amongst the strongest in the market right now.

This rise in price with little volume could be a sign that the institutional investors are very bullish on the SMH and that it only takes a little bit of buying to send things higher, in other words their well positioned for higher market and they aren't about to start distributing any time soon.

Of course I could be totally wrong and because of that, I dont trade those theories, I mainly daytrade or swing trade the stocks in the sector, I don't hold stocks forever. It will be interesting though to see how things play out in the near future as the SMH appears to be on the verge of breaching resistance and making a breakout.
Attached Image (click to enlarge)
Click to Enlarge Name: 2012-03-25_1053_SMH.png Size: 232 KB
  • #15
  • Mar 25, 2012 2:13am Mar 25, 2012 2:13am
I agree with what you stated in the second paragraph about the institutionals ]
it is very easy for them to push things up rapidly with huge orders especially on low volume.

It's not perfect and just a thought but that dip at the end might, might, be a sloppy cup and handle that has formed the cup, and if I looked correctly there should be a little dip that comes now (if the pattern pans out) should be more round) yet, that dip will get bought and then the pattern would essentially blast through the resistance and create a new high for the time period.

Purely just a technical glance. but it does seem this thing is ready to break....

-------------------------------------------------------------

Also to bring the convo out of pm, I agree about gold as well, right now we are stuck in a range. Good for scalping, not for swing, possible positions, but still risky until we get some sort of a better price on a bear swing or a bullish break encouraging buying.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #16
  • Mar 25, 2012 2:14am Mar 25, 2012 2:14am
I looked at the chart again, for the cup and handle the big V in the middle is discouraging, yet it seems to have ALREADY formed the handle and is on the verge pattern or not , of a breakout.

Also the price action before the big dip seems a bit erratic, it was completely oversold, and rebounded with a nice trendline up. Which seems again to support this through the resistance and would again result in a breakout.

I need to look at the stocks in the link you provided to see what we are actually dealing with here.. Yet the analysis still seems valid.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #17
  • Mar 25, 2012 7:16am Mar 25, 2012 7:16am
Quoting XTrade
I looked at the chart again, for the cup and handle the big V in the middle is discouraging, yet it seems to have ALREADY formed the handle and is on the verge pattern or not , of a breakout.

Also the price action before the big dip seems a bit erratic, it was completely oversold, and rebounded with a nice trendline up. Which seems again to support this through the resistance and would again result in a breakout.

I need to look at the stocks in the link you provided to see what we are actually dealing with here.. Yet the analysis still seems...
To be honest, that V reversal doesn't look too good. Your analysis is spot on. I do however; tend to bias my analysis with the trend. I am also starting to get abit nervous at these higher levels, this market could dip easily here but shorting it aggressively would be suicidal. That's why my main focus will be on the hourly chart which is right next to the daily. I will be looking at the support/resistance levels I drew for confirmation.


If we get a breakdown below<35.15, that should be slightly bearish with a minimum target being the 50 daily moving average. A failure below 35.15 is bullish. If we take out 35.75, I expect to see further buying. If we take out 35.75 and fail then that again is bearish.


I can't help myself but set these scenarios, prepare mentally and wish for the best

Thanks for passing through btw your analysis and comments are always appreciated
  • #18
  • Mar 26, 2012 7:01am Mar 26, 2012 7:01am
I might take some heat for this but oh well, I don't really care cause I didn't write it, I just posted it. Enjoy!
  • #19
  • Mar 26, 2012 11:25am Mar 26, 2012 11:25am
Heres a stock that made my master list today and is a stock in a leading sector (technology). I picked Kla-Tencor (KLAC) for several reasons:

1-It was on the verge of making multi-year highs at $53.00.

2-It went parabolic prior to approaching resistance.

3-Upon approaching it resistance, KLAC tried to sell off for two days but failed to go lower and failer to close anywhere near the lows.

4-On Friday, we got an outside day or an engulfing candle right below resistance.

With these technical signs, I just knew that KLAC was about to blow right past that 53.00 level and make those highs which it did. That chart below illustrates how I played my trade long with a step by step intraday analysis of how I traded it.
Attached Image (click to enlarge)
Click to Enlarge Name: 2012-03-26_2004_KLAC.jpg Size: 174 KB
  • #20
  • Mar 26, 2012 10:42pm Mar 26, 2012 10:42pm
Quoting split_unit
Here are two industries on my radar for next week. Stocks in these two sectors might get strength next week if the technical patterns hold.
IBB ripped through as expected. Nice move in the industry yesterday and was amongst the stronges industries yesterday along with the retail XRT, Gold GLD and Silver SLV. Clean move that does occur when your prepared for it.
Attached Images
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