For further examples of our trading calls and how to follow them, please visit our Traders Guide.

[16:06] <bluemonkey_66> This educational chat will cover the topic of being prepared for trading and making a plan. We will not discuss anything else. This is a focused educational chat. We will cover the separate topics of making a plan for day trades and for making a plan for swing trades. You are welcome to suggest topics for future educational chats by sending an e-mail to bluemonkey@stocktradersdaily.com
[16:06] <wonder> mIRC
[16:07] <bluemonkey_66> Before we begin, understand that this chat, at least initially, will NOT be open for questions. Please save all your questions and I will open the chat for questions periodically through the discussion. Out of courtesy for the other members, I must be able to explain my points in detail before you ask any questions.
[16:07] <bluemonkey_66> Please have a pen and paper handy. Also, please print, or open the trades link so that you can follow the called trades when we use examples.
[16:07] <bluemonkey_66> let's hope that the trades link is functional when we need it
[16:07] <bluemonkey_66> Let me know when you are ready to begin.
[16:07] <CarolAnn2> k
[16:08] <MaryA> ready
[16:08] <rotts> ready
[16:08] <ks> ready
[16:08] <popa_> ready
[16:08] <bluemonkey_66> note, I expect response from everyone, so please try to be responsive
[16:08] <bluemonkey_66> thanks..
[16:09] <bluemonkey_66> We make a plan for every trade so that we are prepared for every trade well before the called triggers, entry and exit triggers, are hit. By having a plan, and by knowing what to do in advance, we are never questioning our next move. We act like a machine, and we take the emotions out of trading.
[16:09] <mickd> just got back.
[16:09] <Sailor1> Ready
[16:09] <wonder> I don't have the days trades available
[16:09] <bluemonkey_66> Emotions are the worst human trait that adversely affect your decision making in the Market. By having a set plan, and by following strict rules and guidelines, you actually discount the impact of your emotions considerably. This is an extremely important point.
[16:09] <bluemonkey_66> trade
[16:10] <bluemonkey_66> We therefore use plans to take all the guesswork out of trading, to take the emotions out of trading, to protect ourselves from losses and maximizing our returns, and to be prepared for every trade no matter what happens in the market.
[16:10] <bluemonkey_66> Are there any questions about this?
[16:10] <tj> Clear
[16:10] <wonder> n
[16:10] <tayler> no
[16:10] <plh> no
[16:11] <ang> got it
[16:11] <bluemonkey_66> Now we know why we use a plan, but what actually is a plan?
[16:11] <bluemonkey_66> guesses?
[16:11] <tayler> guidline
[16:11] <mickd> no
[16:11] <CarolAnn2> buy(short) @ x, trget Y stop Z
[16:11] <tj> when to buy - when to sell - stop loss
[16:11] <ang> setting a entry point stop loss and target
[16:12] <tj> + time frame of hold
[16:12] <wonder> buy sell stop
[16:12] <bluemonkey_66> ok...you guys are on the right track
[16:12] <bluemonkey_66> let me explain
[16:12] <Manytix1> Good morning everyone, I am Alfred Pipitone and I am with NobleTrading, an associate of StockTradersDaily. If you have any questions or need any assistance with Noble, or any other broker, please contact me toll free at 877.872.3311 or pm me in the room.
[16:12] <MaryA> long or short, entry, stop, goal
[16:12] <bluemonkey_66> A plan is a set of 3 prices per stock (one for an entry level, one for a target price, and one for a stop price) that we use to make trading decisions. A plan looks like this: Buy @ $25 Target $28 Stop @ $24.8. A plan always has 3 parts, and maybe even a comment attached to it. We could, as an example, add a comment like: anticipate including a
[16:13] <bluemonkey_66> profit stop if triggered. This gives us an idea of what we are going to do as the prices change.
[16:13] <bluemonkey_66> For each stock price, there are 2 plans based on the called trades. There is a support and a resistance plan for every trade. The support plan triggers at the closest support level from the current stock price, and the resistance plan triggers at the closest resistance level from the current stock price.
[16:13] <bluemonkey_66> Here are a couple basic rules for making plans:
[16:14] <bluemonkey_66> 1. We always look to short weak-basket stocks.
[16:14] <bluemonkey_66> 2. We always look to buy strong basket stocks
[16:14] <bluemonkey_66> 3. We can either short or buy neutral basket stocks based on the Market and you have to use your judgement or seek advice from us in the chat room.
[16:14] <bluemonkey_66> 4. We try to keep our stop losses tight. A stop of near $0.20 for every trade is recommended. (we should realize that some will be less than or greater than this number but the stops should be close).
[16:14] <bluemonkey_66> 5. Use profit stops and as if stops whenever possible.
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[16:15] <bluemonkey_66> Are there any questions at this point?
[16:15] <popa_> man, you're typing fast...or pasting?
[16:15] <mickd> so far so good
[16:15] <ang> no
[16:15] <wonder> no
[16:15] <plh> no
[16:15] <tj> clear
[16:15] <Larry3500> Please explain "As If" stops.
[16:15] <cj> got it
[16:15] <cyber> please, what is aprofit stop and as if stop?
[16:16] <bluemonkey_66> You guys will need to read the guide for details when the site is up
[16:16] <bluemonkey_66> but I will breifly describve them...
[16:16] <cyber> thanks.
[16:17] <bluemonkey_66> as if stops are placed when a target is reached but you don't want to exit
[16:17] <bluemonkey_66> so the stop is as if you entered at the target
[16:17] <alexs> larry, cyber, the guide explains "as if" quite well
[16:17] <bluemonkey_66> a profit stop is placed after your stock moves past a round number by .25
[16:18] <bluemonkey_66> and the stop is place .01 on the other side of the round number
[16:18] <bluemonkey_66> Please read the guide when it is higher for clarification
[16:18] <bluemonkey_66> We plan on using a few examples from the trading calls made today. Please look at the trades link and be prepared to make trading plans for the called trades when I give you a stock price. We will start slow, with detailed explainations, and then we will move fast. The idea is to reply with a plan as fast as possible. Consider the reply you make as a race. The faster, and more sharp your mind works when cr
[16:18] <bluemonkey_66> trade
[16:18] <bluemonkey_66> I am going to paste the calls here
[16:18] <cyber> my broker does not have those stops on the online options.
[16:18] <bluemonkey_66> write them on a piece of paper
[16:19] <bluemonkey_66> cyber, this is not the time to talk about your broker, but don't expect those options from any broker, read the guide please and you will understand
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[16:19] <bluemonkey_66> Stock: BRCM
[16:19] <bluemonkey_66> Basket: Weak
[16:19] <bluemonkey_66> Sup1: 41.45
[16:19] <bluemonkey_66> Sup2: 41
[16:19] <bluemonkey_66> Sup3: 40.2
[16:19] <bluemonkey_66> Res1: 42.2
[16:19] <bluemonkey_66> Res2: 43.1
[16:19] <bluemonkey_66> Res3: 44
[16:20] <bluemonkey_66> do you guys see that?
[16:20] <cj> yes
[16:20] <wonder> yes
[16:20] <tayler> y
[16:20] <plh> yes
[16:20] <cyber> yes
[16:20] <ang> yep
[16:20] <bluemonkey_66> please write it down
[16:20] <rotts> yes
[16:21] <bluemonkey_66> we are going to practice writing plans
[16:21] <bluemonkey_66> I am going to give you a number and I want you to respond with a plan...
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[16:21] <bluemonkey_66> let me know when you have the numbers written down and when you all are ready
[16:21] <popa_> ready
[16:21] <cj> Ready
[16:21] <ulala> ready
[16:21] <wonder> ready
[16:22] <Mallard> ready
[16:22] <plh> ready
[16:22] <bluemonkey_66> The faster your response the better
[16:22] <ang> ready
[16:22] <rotts> ready
[16:22] <bluemonkey_66> I am looking for a support plan only
[16:22] <popa_> can't type faster
[16:22] <mickd> ready
[16:22] <cj> faster
[16:22] <nguye422> ready
[16:22] <MaryA> ready
[16:22] <bluemonkey_66> what is the support plan if BRCM is 41.2?
[16:22] <popa_> what do u mean by support plan?
[16:23] <popa_> short at 41.45 or 41
[16:23] <cj> Short at 41.45, Target 41, stop at 41.65
[16:23] <lk> short @ 41.45
[16:23] <nguye422> 41.2 + 0.25 = 41.45
[16:23] <bluemonkey_66> For each stock price, there are 2 plans based on the called trades. There is a support and a resistance plan for every trade. The support plan triggers at the closest support level from the current stock price, and the resistance plan triggers at the closest resistance level from the current stock price.
[16:23] <ang> short at 41 stop loss at 41.2 target40.2
[16:23] <plh> buy 41.20 target 40.20 stop 41.40
[16:24] <MaryA> short 41,target 49.2,stop 41.2
[16:24] <mickd> same
[16:24] <popa_> sh 41, t 40.2, st 41.65
[16:24] <MaryA> target 40.2
[16:24] <wonder> in at 41.00 stop at 40.8 target 41.45
[16:24] <tayler> 41 40.2 41.2
[16:24] <rotts> trigger:41 stop: 41.2 target:40.2
[16:24] <bird> shosrt 41 target 40.2 stop41.4
[16:24] <bluemonkey_66> proper support plan = short @ 41 target 40.2, stop 41.2
[16:24] <ks> short at 40.5 stop at 41.
[16:25] <bluemonkey_66> does everyone see why?
[16:25] <tayler> yup
[16:25] <plh> yes
[16:25] <tj> yes
[16:25] <Sailor1> yes
[16:25] <mickd> yes
[16:25] <popa_> yes
[16:25] <cj> yes
[16:25] <wonder> need it be short
[16:25] <ang> yes
[16:25] <Larry3500> It's a weak stock; must be short.
[16:25] <CarolAnn2> but there should be a second plan, because the stock is between triggers
[16:25] <bluemonkey_66> BRCM is 41.2, please give me the resistance plan....
[16:26] <ulala> 41.45
[16:26] <bluemonkey_66> the whole plan
[16:26] <popa_> short 41.45, target 41, stop 41.65
[16:26] <bluemonkey_66> complete plan
[16:26] <cj> 41.45, target 41, stop 41.65
[16:26] <tj> short 42.2 stop: 42 target:41.45
[16:26] <ulala> short 41.45 target41 stop 41.7
[16:26] <mickd> 41.45, tgt 41, stop 41.65
[16:27] <tayler> 42.2 40.2 42.4
[16:27] <wonder> short 41.45 stop 41.65 tar 41
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[16:27] <bluemonkey_66> tj, where is the next level of resistance if brcm is 41.2?
[16:27] <nguye422> short 41.45, target = 41, stop = 41. 65
[16:27] <ang> short 41.45 stop 41.65 target 41
[16:27] <tj> 41.45
[16:27] <ks> buy 42,stop 40.5,target 45
[16:27] <tj> got it
[16:27] <nguye422> 41.45
[16:27] <bluemonkey_66> right...tj...please adjust your call....
[16:27] <tj> short 41.45, stop 41.25 target 41
[16:28] <tj> stop 41.65 - oops
[16:28] <bluemonkey_66> proper plan = short at 41.45 target 41 stop 41.65
[16:28] <bluemonkey_66> everyone sees that ????
[16:28] <cj> yes
[16:28] <Sailor1> yes
[16:28] <wonder> yes
[16:28] <mickd> yes
[16:28] <popa_> yes
[16:28] <bluemonkey_66> good job so far
[16:28] <Larry3500> Some were -0.20 instead of + 0.20.
[16:28] <bluemonkey_66> let's use a different number....
[16:29] <bluemonkey_66> note...this is a race...
[16:29] <bluemonkey_66> the faster you give a complete plan answer the better
[16:29] <bluemonkey_66> partial plan answers do not count
[16:29] <bluemonkey_66> BRCM is 43.5 what is the resistance plan????
[16:30] <tj> short: 43.1 target: 42.2 stop: 43.3
[16:30] <cj> short 44, target 43.1, stop 44.2
[16:30] <ulala> short 44 target 43.1 stop44.2
[16:30] <popa_> short 44 target 43.1stop44.2
[16:30] <mickd> short 44, tgt 43.1 stop 44.2
[16:30] <Sailor1> Short44 target 43.1 stop 44.2
[16:30] <nguye422> short 44, stop 44.25, target = 43.1
[16:30] <wonder> short 44.0 st 44.2 t43.1
[16:30] <RV> 43.5 STOP 53.25 TARG 44
[16:30] <Larry3500> Short @ 44.00 stop 44.20 target 43.10
[16:30] <MaryA> entry 44, goal 43.1,, stop 44.2
[16:31] <bluemonkey_66> proper plan = short at 44 (the nearest resistance level) target 43.1 (the nearest support level) stop 44.2 (.2 over the entry trigger)
[16:31] <lk> short @ 42.2 target 41.45 stop 42.4
[16:31] <bluemonkey_66> wrong lk
[16:31] <bluemonkey_66> we are looking for the resistance plan
[16:32] <bluemonkey_66> For each stock price, there are 2 plans based on the called trades. There is a support and a resistance plan for every trade. The support plan triggers at the closest support level from the current stock price, and the resistance plan triggers at the closest resistance level from the current stock price.
[16:32] <lk> 42.2 is resistance 1
[16:32] <bluemonkey_66> but if BRCM is 43.5, where id the first level of resistance???
[16:32] <bluemonkey_66> brcm is 43.5 now???
[16:32] <lk> 44.
[16:32] <tj> 44
[16:33] <bluemonkey_66> remember, when a resistance level breaks it becomes support
[16:33] <bluemonkey_66> and when a support level breaks it becomes resistance
[16:33] <bluemonkey_66> let's try another
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[16:34] <cj> ready
[16:34] <nguye422> reafy
[16:34] <bluemonkey_66> BRCM is 40.9 what is the support plan?????
[16:34] <cyber> I have a question regarding this example, though
[16:34] <uu1> ready
[16:35] <popa_> short 41 target 40.2 stop 41.2
[16:35] <cj> short 40.2, stop at 40.4 target is not defined.
[16:35] <tj> short: 41 target: 40.2 stop: 41.2
[16:35] <tj> or what cj said?
[16:35] <MaryA> trigger 41, target 41.45, stop 41.2
[16:35] <lk> short @ 40.2 stop 40.
[16:36] <nguye422> short = 41, stop = 40.8, target = 41.45
[16:36] <wonder> short 41.0 st 40.8 t 41.45
[16:36] <lk> stop 40.4
[16:36] <bluemonkey_66> try again guys, we are looking for a support plan
[16:36] <bluemonkey_66> For each stock price, there are 2 plans based on the called trades. There is a support and a resistance plan for every trade. The support plan triggers at the closest support level from the current stock price, and the resistance plan triggers at the closest resistance level from the current stock price.
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[16:36] <mickd> short 40.2 stop 40.4 tgt ?
[16:36] <wonder> but its short right?
[16:36] <lk> short @ 40 2 stop 40.4
[16:36] <nguye422> buy 41, stop 40.8, target = 41.45
[16:37] <popa_> short 41 target 40.2 stop 41.2
[16:37] <cj> short 41, target 40.2, stop 41.2
[16:37] <bluemonkey_66> 1. We always look to short weak-basket stocks.
[16:37] <bluemonkey_66> 2. We always look to buy strong basket stocks
[16:37] <bluemonkey_66> 3. We can either short or buy neutral basket stocks based on the Market and you have to use your judgement or seek advice from us in the chat room.
[16:37] <bluemonkey_66> 4. We try to keep our stop losses tight. A stop of near $0.20 for every trade is recommended. (we should realize that some will be less than or greater than this number but the stops should be close).
[16:37] <bluemonkey_66> 5. Use profit stops and as if stops whenever possible
[16:37] <wonder> short 41.st 41.2 t 40.2
[16:37] <bluemonkey_66> what kind of plan are we looking for?
[16:37] <popa_> support plan
[16:37] <mickd> we don't know what sup4 is
[16:38] <wonder> and brcm is weak right
[16:38] <cj> support
[16:38] <bluemonkey_66> brcm is weak yes
[16:38] <bluemonkey_66> we are looking for a support plan right?
[16:38] <popa_> so want to short
[16:38] <wonder> support weak
[16:38] <bluemonkey_66> and BRCM is weak right?
[16:38] <nguye422> short =41, target = 41.25, stop = 40.8
[16:38] <wonder> yes
[16:38] <mickd> short 40.2 tgt ???? stop 40.4
[16:38] <bluemonkey_66> so, if BRCM is 40.9, where is the next level of support???
[16:39] <tj> 40.2
[16:39] <mickd> 40.2
[16:39] <cj> 40.9
[16:39] <lk> 40.2
[16:39] <wonder> 41
[16:39] <nguye422> shor = 41, target = 41.45, stop = 40.8
[16:39] <cj> 40.2 oops
[16:39] <popa_> 41
[16:39] <nguye422> 41
[16:39] <bluemonkey_66> wonder, is 41 the next level of support, or the next level of resistance?
[16:39] <wonder> suport
[16:39] <bluemonkey_66> is 41 higher or lower than 40.9?
[16:39] <Larry3500> Short at 40.2 stop 41.4, expect it to collapse and we make big money!
[16:39] <lk> resistance
[16:39] <wonder> higher
[16:40] <cj> higher
[16:40] <bluemonkey_66> if a price is higher than the current price would it be a support level?
[16:40] <mickd> like yer plan larry
[16:40] <popa_> current price=40.9, short 40.2, stop 40.4, target whatever
[16:40] <popa_> whatever=lower than 40.2
[16:40] <tj> short 40.2 target: unknown stop: 40.4
[16:40] <wonder> got it ...not until it passed that res level
[16:41] <bluemonkey_66> think of support as the floor, and resistance as the ceiling
[16:41] <popa_> i'd short at 40.9 though and got extra .7
[16:41] <wonder> check
[16:41] <cj> unless it goes above 41
[16:41] <bluemonkey_66> the proper support plan for BRCM at 40.9 is to short at 40.2 target (ask for a sup4 in chat) stop 40.4
[16:42] <popa_> question: 40.9 is so close to 41
[16:42] <bluemonkey_66> there is no unless cj
[16:42] <bluemonkey_66> this is the plan
[16:42] <wonder> got it
[16:42] <popa_> when do we know stock is not gonna bounce back above 41(ormer support)
[16:42] <bluemonkey_66> unlessit triggers at 41 popa we do not get the short
[16:42] <cj> got, i was responding to popa's short at 40.9
[16:42] <bluemonkey_66> you never know
[16:43] <bluemonkey_66> anything can happen
[16:43] <bluemonkey_66> that's why we have plans
[16:43] <bluemonkey_66> but
[16:43] <bluemonkey_66> let's take the other side...
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[16:43] <bluemonkey_66> what is the resistance plan if BRCM is 40.9?
[16:43] <popa_> with market orders your executions may vary by .05-.15
[16:43] <popa_> which is 40.9
[16:43] <tj> short: 41 target: 40.2 stop: 41.2
[16:43] <wonder> short 41.0 stop 41.2 target 40.2
[16:44] <Larry3500> Per tj
[16:44] <mickd> short 41 stop 41.2 tgt 40.2
[16:44] <popa_> 41/40.2/41.2
[16:44] <lk> short @ 41. stop 41.2 target 40.2
[16:44] <ulala> short 40.2 stop 40.4 ask sup 4
[16:44] <cj> short 41, target 40.2 stop 41.2
[16:44] <nguye422> short= 42.2, target = 41.45, stop = 42.4
[16:44] <bluemonkey_66> note, most of you are doing an excellent job responding with full plans...
[16:44] <bluemonkey_66> doing this will help you think properly
[16:45] <bluemonkey_66> nguy, you are having many problems following the trades...
[16:45] <MaryA> short 41, target 40.1, stop 41.2
[16:45] <bluemonkey_66> the calls...
[16:45] <nguye422> short 41, stop = 41.2, target = 40.2
[16:45] <bluemonkey_66> right ngu, better
[16:45] <ulala> short 41 target 40.2 stop 41.2
[16:46] <bluemonkey_66> proper plan = short @ 41 target 40.2, stop 41.2
[16:46] <bluemonkey_66> now we have 2 plans...
[16:46] <bluemonkey_66> if brcm is at 40.9 we knopw what to do if it moves higher or lower
[16:46] <bluemonkey_66> we have plans on both sides
[16:46] <bluemonkey_66> and we are ready for anything
[16:47] <bluemonkey_66> let's say we initiated a BRCM resistance plan (it was triggered at 41), but then it stopped...what would the new resistance plan be???
[16:47] <tj> short: 41.45 target: 41 stop: 41.65
[16:47] <mickd> 41.45, tgt 41. stop 41/65
[16:48] <popa_> short 41.45, target 41 stop 41.65
[16:48] <nguye422> short @ 41.45, stop = 41.25, target = 41
[16:48] <cj> Sthort 41.45, target 41, stop 41.45, that assumes stop was at 41.2 and is still above that.
[16:48] <wonder> short 41.45 stop 41.65 t 41
[16:48] <ulala> short 41.45 stop 41.65 target 41
[16:48] <nguye422> oops my stop = 41.65
[16:48] <lk> 41.45
[16:49] <cj> my stop was 41.65
[16:49] <bluemonkey_66> proper revised resistance plan = short at 41.45 target 41 stop 41.65...
[16:49] <bluemonkey_66> does everyone see that...???
[16:49] <cj> yes
[16:49] <wonder> yes
[16:49] <ulala> yes
[16:49] <lk> yes
[16:50] <Sailor1> yes
[16:50] <nguye422> yes
[16:50] <Larry3500> Yes.
[16:50] <mickd> yes
[16:50] <bluemonkey_66> note when we first make a call the stock is uaually between sup1 and res 1 right???
[16:50] <mickd> right
[16:50] <nguye422> yes
[16:51] <bluemonkey_66> do we need the stock to move before we know what the resistance and support plans will be at various levels???
[16:51] <mickd> no
[16:51] <ulala> no
[16:51] <wonder> no
[16:51] <nguye422> no
[16:51] <tj> no
[16:51] <cj> no
[16:51] <ulala> have to plane ahead of trading
[16:51] <Larry3500> No.
[16:51] <bluemonkey_66> you guys are all right...
[16:51] <cj> :-)
[16:51] <popa_> no, unless stock becomes stronger or weaker
[16:51] <bluemonkey_66> we know what all of the support and all of the resistance plans are well before they trigger
[16:52] <bluemonkey_66> there is no reason why we should not be prepared for trade executions as a result
[16:52] <bluemonkey_66> and with the plans...
[16:52] <bluemonkey_66> we act like a machine
[16:52] <bluemonkey_66> emotions are taken out of the picture
[16:52] <bluemonkey_66> we follow the rules
[16:53] <bluemonkey_66> we make the decisions beforehand
[16:53] <bluemonkey_66> and we know what our plans are so we don't need to ask last minute questions
[16:53] <bluemonkey_66> Friends, we have a plan, and that makes trading easy...
[16:53] <bluemonkey_66> I am open to general questions
[16:54] <wonder> how do you arrive at the s & r numbers
[16:54] <bluemonkey_66> we use charts and the fibonacci calculator
[16:54] <cj> in cases like SEBL today, when you are at end of day and your target hasn't been reached, what is plan for exitiing in cash, just pick a price?
[16:54] <wonder> right but a little more detail...?
[16:54] <Larry3500> I've tried the Fib. calc. but I don't get the same results.
[16:54] <wonder> same
[16:55] <bluemonkey_66> wonder, that is not a discussion for today
[16:55] <popa_> when to decide to take profit before reaching target, as opposed to trade being stopped for -.2? what to do when target is reached - close trade or wait for profit stop?
[16:55] <bluemonkey_66> sebl was closed early in the day
[16:55] <bluemonkey_66> as a result there should not have been any positions late
[16:55] <bluemonkey_66> but
[16:55] <ulala> how come when i use fibonacci to calcullate the res & sup alway is differrent from your BM?
[16:55] <bluemonkey_66> if you hold a position that has not reached your target
[16:56] <bluemonkey_66> you need to just exit
[16:56] <bluemonkey_66> don't hold
[16:56] <bluemonkey_66> ie---pick a price
[16:56] <bluemonkey_66> We will not discuss how I find sup and res levels today
[16:56] <cj> That's what I did, just picked to soon as it turned out...But I was + 1.6 on it.
[16:56] <bluemonkey_66> popa, if you see the mkt moving in your favor
[16:57] <bluemonkey_66> and you don't want to exit at the target
[16:57] <bluemonkey_66> you use an as if stop
[16:57] <bluemonkey_66> or a profit stop if appropriate
[16:58] <Sailor1> Thanks BM. Very useful Chat
[16:58] <popa_> what if entered at good level, but stock losses steam, stalls and is not going with the market. the call is still open, shouldn't we adjust the call without losing -.4 or so after trying two times?
[16:58] <bluemonkey_66> Are there any more questions about making a plan and being prepared???
[16:58] <loeber1> I have a question blue about the emotions thing
[16:58] <wonder> No, thank you very concise.
[16:59] <plh> no. thx for the help bm.
[16:59] <bluemonkey_66> popa, adjustments are made when we feel they should be, but if you are stopped numerous times, the levels isn't that good is it.. :-)
[16:59] <cj> no
[16:59] <bluemonkey_66> go ahead loeber
[16:59] <loeber1> that is, is there ever anything can happen after the plan starts that will make you change the plan
[16:59] <loeber1> ?
[17:00] <bluemonkey_66> the only changes to the plan are as if and profit stops
[17:00] <popa_> that's my point, when to stop trading the call, even though the call is still open. i'm assuming we are following YOUR calls
[17:00] <popa_> and levels for that matter
[17:00] <bluemonkey_66> we will determine that popa and adjust or close the trades appropriately
[17:00] <cyber> I have a question too.
[17:01] *** loeber11 has joined #stocktradersdaily
[17:01] <bluemonkey_66> go ahead cyber
[17:02] <bluemonkey_66> If there are no more questions...
[17:02] <Larry3500> I have one.
[17:02] <bluemonkey_66> I hope you all have a great day
[17:02] <tj> BM - u mentioned u had a limit of 20 trades in a day - is that 20 buys + 20 sells (i.e. 40 trades) or 20 buys and sells total
[17:02] <popa_> i have one more question
[17:03] <cyber> thanks. In the first example: BRCM=41.2, res1= 41.45, res2=41, r3=40.2. If you already took the decision of shorting, why do you wait until re1?
[17:03] <bluemonkey_66> 1 trade = 1 buy + 1 sell, so 20 round trips
[17:03] <mickd> great class, Blue. Thanks. Hasta manana.
[17:03] <lk> BM in swing trade, if I missed entry price but your target didn't hit, can I still get in?
[17:03] <cyber> please read support instead of resistance with those numbers.
[17:03] <bluemonkey_66> you always wait until the triggers are hit cyber, no matter what
[17:03] <tj> how do you manage all these trades for tax purposes? There are so many.
[17:03] <Larry3500> Does direction matter? Strong stock, res at $40. Do I buy at 40 on the way down or wait for it to come UP through 40?
[17:04] <bluemonkey_66> lk, no, we buy or short near support and resistance levels and not in between those levels...
[17:04] <bluemonkey_66> if you missed the trades you should not chase them
[17:04] <popa_> bm, you're suggesting to stick to res/sup levels no matter what which impies use of limit orders. sometimes it's not possible due to market moving too quickly
[17:04] <bluemonkey_66> larry, the stock will be vcalled strong/weak based on direction
[17:04] <popa_> what to do then?
[17:04] <popa_> let me give you an example
[17:05] <bluemonkey_66> you only trigger at the called levels though
[17:05] <bluemonkey_66> no where else
[17:05] <bluemonkey_66> popa, if you are unable to execute you do not chase it
[17:05] <bluemonkey_66> it's as simple as that
[17:05] <popa_> brcm is in strong basket, brcm just moved from 40.85 to 40.1 in 3 secs, you had buy limit at 41 for 1000 shares, but only 200 got executed
[17:06] <popa_> what to do then?
[17:06] <bluemonkey_66> don't chase it and trade you 200 shares as you would your 1000 shares
[17:07] <loeber1> blue, are you still doing 4 positions, on day trades or just two now?
[17:07] <bluemonkey_66> I can't stress enough: don't chase anything
[17:07] <bluemonkey_66> there is no set rule loeber
[17:07] <Larry3500> Not even women?
[17:07] <bluemonkey_66> especially not women...
[17:07] <lk> like BRCM the target is 30 now BRCM is above 41. still have 10 point profit?I know entry is 43.4
[17:08] <bluemonkey_66> let them come to you :-)
[17:08] <loeber1> how many have you been able to watch at a time, I guess when we're starting we should do one or two?
[17:08] <popa_> i like your system bm...;-)
[17:08] <bluemonkey_66> lk, the identified resistance was made, other than that we have no clear entry level
[17:08] <bluemonkey_66> because there is no clear entry level there is no clear stop level
[17:08] <bluemonkey_66> therefore we don't trade it
[17:08] <popa_> bm, do u use limit orders, or your execution prices are soooo much better than 80% of the room?
[17:09] <bluemonkey_66> until it nears resistance
[17:09] <bluemonkey_66> or breaks support
[17:09] <bluemonkey_66> so we can set appropriate stops
[17:09] <lk> ok thx so much BM
[17:09] <bluemonkey_66> use limit orders coupled with direct access level 2 trading with limits of .05 away from the trigger
[17:10] <bluemonkey_66> to enter stocks
[17:10] <loeber1> what does the .05 away mean?
[17:10] <bluemonkey_66> if the trigger is 30 to buy a stock your limit should be 30.05 if 30 is triggered
[17:11] <popa_> u mentioned that support may become resistance and vice versa...what to do then?
[17:11] <loeber1> does that mean that when the stock is a long and the trigger is 30 you enter an order for 30.05?
[17:11] <bluemonkey_66> use the other plans popa, appropriatrely, based on price
[17:12] <bluemonkey_66> you enter a limit order to buy with 30.05 limit when the trigger hits at 30
[17:12] <bluemonkey_66> you never buy at 30.05 unless 30 triggers
[17:13] <loeber1> gotcha, but we will sometimes get a few cents better price, is that right?
[17:13] <bluemonkey_66> right
[17:13] <Larry3500> Does the trading system you use allow you to enter a stop at the same time as the original entry, or do you have to wait for the fill before you can place the stop?
[17:13] <bluemonkey_66> stops, the best stops to use, if you have direct access level 2 trading, are mental stops
[17:14] <bluemonkey_66> we'll leave this for another time
[17:14] <bluemonkey_66> I hope you all learned something
[17:14] <bluemonkey_66> Have a great day all...
[17:14] <Larry3500> OK. It's been a great session!
[17:14] <loeber1> blue, do you ever vary on your number of shares, from the 500 share example, say if you just like a trade better than
[17:14] <loeber1> another?
[17:14] <wonder> Yes very good ... more tomarrow
[17:14] <bluemonkey_66> keep your share constant
[17:15] <cj> Thanks!
[17:15] <bluemonkey_66> always
[17:15] <popa_> thanks blue, good chat
[17:15] <bluemonkey_66> no trade is better than another
[17:15] <bluemonkey_66> bye guys
[17:15] <bluemonkey_66> I'm out
[17:15] <loeber1> thks always
[17:15] <lk> thanks BM