Login to Post New
BOOMTOWN25
I have been trading stocks in my retirement account for nearly a year
posted May 28 '14 by boomtown25
I have been trading stocks in my retirement account for nearly a year now after learning that my manager (although told to be aggressive) had basically bought 10 stocks since he took my portfolio over and never got out (well, almost never). He lost nearly 1/3 of my entire portfolio. I decided I could do a little better than that and took it over in June 2013. From June to December, I gained 24%. Jan. to March 2014, I went up another 13%. I got lazy and ignored my stocks and the technicals thinking "no reason to get out, these are volatile stocks and I will bounce back. Well, I got crushed all the way back down. I am more diligent now and have have made about 14% gain back and looking decent, although still below end of last year. I am, though, looking for a more "straight forward" technical sign to get in and out. Here is why- My technicals are allegedly set on the same numbers on E-Trade as this site. I realize that this site updates the info every 15 minutes, but the "buy" and "sell" indicators rarely get me in before the wave, and often the wave have come back down before I know it is time to get out. Is there a way to set the SMA charts and the Stochastics to be more sensitive if I check the charts every morning and every evening, before closing bell?

ALEX
10 day Moving Average is the shortest available.
posted Jun 02 '14 by alex
10 day Moving Average is the shortest available.

If you are looking for an early indication you probably should be focusing more on a short term moving average. The shortest one available on stock2own is a 10 day moving average. So, if you just focus on this indicator alone, it can give you a warning sign way before than all other indicators. However, keep in mind, that it can give you a lot more signals in general.

Technical Indicators Alerts - buy and sell signals - are cumulative alerts. They include several technical indicators. I think you should not rely on them in a real time mode. They really helpful to find good stocks to watch or to monitor your positions on a daily basis, but as soon as you see “almost” alert - start watching your stocks really close and try to pay more attention to the short term indicator, like 10 day moving average.

For example, if I have a long position on a stock I feel reasonably comfortable keeping it as long as I see alert “Hold”. However, when it changes to “almost sell” I start to pay more attention and sometimes considering closing the position even before I get “sell” alert.

Also, nothing works 100% of the time. A big news or extremely good to bad earnings report, can send stock up or down dramatically and I think no technical indicator can help you there. Therefore, I think, Phil Town is always saying do not hold an option position which expires after earnings call. Unless you are gambling, of course :-)

BOOMTOWN25
Thank you for your quick response Alex! Here is an additional
posted Jun 04 '14 by boomtown25
Thank you for your quick response Alex! Here is an additional question to go with the one which you responded to: I have my setting default on monitoring the 3 month period although I always check the 3 month, 1 month, and 5 day. My Stochastics are set on 14, 5, 5 and my MACD is on 8,17,9. I use E-trade. I would assume that regardless of the time frame (3 month, 1 month, or 5 days) that all technical signals should be identical, except maybe the fact that the graph is more detailed or for lesser words "magnified" when you go to a lower time frame. However, I often find this not to be the case. For example, I just checked the 3 month Stoch on a stock I watch and it was clearly in the sell or avoid position (I am only referring to Stoch in this example, I know this is one of 3 for the rule 1). However, the same stock when I view in the 5 day chart has the Stoch in the buy position. Not a strong buy, but buy none the less. Basically what I am trying to say is in the 5 day graphs the stock has all techinicals in the buy signal, yet in the 3 month model only my moving average is in the buy signal while the stoch and the MACD are in the sell.......... I have no problem buying a stock, riding it for a day or two and then jumping ship if the techincals say to, so just looking for the best set up in that type of trading (not day trading, but in and out in a short period). I might want to point out that although these 3 stocks I often trade in and out are all A+ stocks with low long term debt and great growth and at value price, they are extremely volatile and I have seen them swing up to 10% regularly both ways within days......

ALEX
Chart Type: weekly, daily or minute chart.
posted Jun 05 '14 by alex
Chart Type: weekly, daily or minute chart.
I know that some online brokerages automatically change chart type based on selected date range. For example, if this is a 1-3 month date range, it is usually a DAILY chart; if date range is more than 1 year, it could become WEEKLY chart. I think for a really short date ranges, like 5 day graphs in your example, the chart can become a MINUTE chart. Usually, it is supposed to be stated somewhere – in a chart title or legend, try to find it.

Could this be the case with your ETrade charts?

On stock2own.com we have only DAILY and WEEKLY charts and it is clearly stated in the chart title. Well, default type is DAILY, therefore WEEKLY chart is explicitly marked. So, if you are in a DAILY chart, no matter what date range you select, you shall see exactly the same signal. I think this is essential and agree with you – auto adjustments could become really confusing.

So, most common chart for stocks is a DAILY chart. It used for decision making as well as for daily monitoring stocks and means that all - open, close, high and low - prices required for certain charts (EMA, Stochastic, MACD, for example) will be taken per day: highest of the day, lowest of the day, day open and day close prices.

WEEKLY chart is used for longer term analysis and means that all - open, close, high and low - are taken per week. It is really helpful if you want to see a long term trade and usually used at the time when you are making a decision of opening new position. You may find a WEEKLY chart on stock2own. It also includes 30 weeks moving average. This is another interesting thing – it is supposed to match 150 days moving average on a DAILY chart, because 150 days = 30 weeks (5 working days per week).

MINUTE chart, I think, used mostly by day traders and forex traders.

If you really see different types of charts for different date ranges, I think the important question is what would happen with a 30 day moving average set on a daily chart if it was auto converted to a weekly chart? Will it become a 30 week moving average? And we know for sure that 30 days is not the same as 30 weeks, those 2 a distinctly different types of analysis…

Login to Post New