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I'll try to address questions from several people in one reply so here goes.
First off I didn't open my position yet because I want to open on a
pullback. If it doesn't occur tomorrow I'll probably dive in anyway.
I plan to set an initial stop loss at 27 15/16 which is the 50 day ATR. I'm
going to use end of day charts for this trade, no monkey business in the
middle of the day. My target will be the high of 6/2 which was 35 1/2.
However if and when I reach that target I'll probably employ the Chandelier
and yo-yo exit strategy Chuck LeBeau uses. I have no specific time frame in
which to reach that target but if things start to seem stale I may look to
reallocate some or all of my money into another trade.
I use a simple moving average on the ATR.
My total portfolio risk on this trade will be only about 1%.
I'll have house guests all weekend so if I'm slow to respond please
understand. (Slower than normal) But do understand I don't mind posting
trades because I learned from some very helpful people before me who were
kind enough to walk through some of their trades every now and then.
Regards
John Manasco
----- Original Message -----
From: Al Taglavore <altag@xxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Thursday, July 13, 2000 10:55 AM
Subject: Re: Good Knight
> My 2 cents worth. I would set the exit at 27 15/16 which is one tick
below
> the 7-11 close and coincides with the 50 day ATR. If your trade is
> correct, I would expect to hit resistance (and take a profit) at 35 1/2.
> Then the question would be at what point you would execute re-entry. If
> the exit is too far from entry for your risk/reward level, then I would
> pass the trade.
>
> What is your time frame, John? If short term (1-3 days), look at the
> relationship of the low/close of 5/24 to the close of 5-30. This is
> something I have been working with that has been profitable, but I have
not
> extensively tested. If interested, I will share with you off this list.
>
> I write this to counter a comment that was posted yesterday that "real"
> traders don't discuss trades. I will gladly discuss any trade (winners
and
> losers).
>
> Al Taglavore
> ----------
> > From: John Manasco <john@xxxxxxxxxxx>
> > To: Metastock List <metastock@xxxxxxxxxxxxx>
> > Subject: Good Knight
> > Date: Thursday, July 13, 2000 7:49 AM
> >
> > I'm considering a position in Knight/Trimark symbol NITE. The stock and
> > sector both seem to have bottomed (may be a big assumption) and are
> turning
> > up. It closed yesterday (7/12) at 30 11/16. It crossed significantly
> above
> > its 10 day ma but is still below the 200 and 50 day ma although it is
> > bumping up against the 50. The 50 day ATR is about 2.75. If I enter at
> > yesterdays close of 30 11/16 and only want to risk 2% on the trade then
> I'll
> > put my stop at 30 1/16 which is only 5/8 away from my entry. If I use
the
> 50
> > day ATR the my stop will be about 27 15/16. If I use the near term low
on
> > 7/10 of $27 I would place a stop at 26 15/16. So where would you place a
> > stop? What is a reasonable risk profile for this stock?
> >
> > NITE's most recent high on 6/02 was 35 1/2 so what could I expect to
make
> on
> > the trade?
> >
> > Comments requested
> >
> > John Manasco
>
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