Question for Whodi

[Goods]

Hey Whodi--- Do you use a mechanical trading system (and I won't ask what you use if you do), that tells you when and where to make a trade? Would you recommend using one?

Thanks man.

[whodi]

Whats up Goods, sorry for the late responses. Like I said before, I haven't really been on Cappers much lately but to answer your question. I do not use a mechanical system. I mostly get my picks from my own research and I also have friends that trade, so we pretty much help each other out. Some will look at different sectors and we exchange stocks we think are good shorts and longs, that way we can maximize our reseach without having to do hours at a time by ourself overlooking the market as a whole. The more involved, the less work and more ability to focus on trading. At the same time, I still do a lot of research on the stocks they may recommend to make sure it is a stock I want to trade.

[Goods]

Thanks Whodi. I asked because I've been getting trounced on daytrades lately. My timing's been awful. I'm hitting a small gain early once I get in, but it turns quickly and I'm chasing back to even the rest of the trade.

Had a little more success using 5 min charts for a better picture of the trend as opposed to 1 min. But having a difficult time seeing the correct entry points. Any advice? Indicators?

[whodi]

Haven't daytraded at all in a while because I haven't had the time to dedicate to daytrading, but my advice to you, which always works for me, but keep in mind, everyone has there own style, so what works for me may not work for you. When I am daytrading, 1st and foremost I WANT VOLUME, which we have discussed before allows you to get in and out quickly, which is the #1 key compent. If the 5 minute charts are working better for you then stick with the 5 minute charts. Remember also, and not saying your doing it at all but don't daytrade just to trade, make sure your daytrading a stock for a reason. Once you find the stock that you want to trade, the chart seems to be shaping up nicely for a daytrade, volume is strong enough where it will presents a good opportunity, you want to follow KEY INDICATORS, and what I mean by that is if you are daytrading a semiconductor stock for example, bring up the semi index for the stock, along with the NAZ on a 5 minute chart if thats what you are using and see if the stock is following the index and NAZ because if the stock is following these key indicators and you are daytrading for a buy and the semi index is ticking up, then you know the stock will most likely follow the index and the NAZ, and vice versa on a short and when it starts ticking down, then you know its probably a good time to get out and you can keep doing this if you found a good stock and keep daytrading it none stop and make a nice profit and at the same time, u will be able to anticipate the movements and maximize your gains that much more because you will know how the stock reacts to these shifts. At the same time, if you are daytrading a stock and it is very strong, nice volume, been going sideways looks like it is getting ready to start breaking out and the sector is downticking and the NAZ is coming down, but the stock is ignoring these indicators, then there is a good chance you will have a runner once the sector and naz starts moving positive to give it that much more strength and should present a nice profit, it will be that much stronger and the same applies for shorts. ALWAYS REMEMBER TO SET ALARMS FOR THESE STOCKS YOUR WATCHING, because you may find a stock that you know has the opportunity for a solid trade and its going sideways, ur followin the naz and the indexes, set alarms on a price where the stock is starting to break the sideways but set the alarm to a price that allows you to get in before the run really starts to happen, that way, when the alarm goes off, you will be organized to see what the naz and the indexes are doing and it will give you plenty of time to not only get in the stock, but you will be able to analyse the shifts and your entry points will be so much better your profits will be increasing dramatically, again, same for shorts. Set those alarms for the stocks, the naz, and the indexes. Those alarms are so key as well. Gives you that opporunity to prepare before the movement as long as you set it at the right prices before the stock can really run on you.

[Goods]

That's much appreciated Whodi. Thanks for taking the time to write it out. I'll study up more tonight.