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21 Questions from Last Week’s Chat

Last week’s trader chat [1] generated quite a few questions.  A number of them we were able to address during the chat, but many more went unanswered.trader-chat-answers [2]

If you were in attendance and didn’t get your question answered, look for it below. But even if you weren’t there, hopefully you’ll find this useful to observe.

Here are 21 unanswered questions from the session:

1.  Footbargain:  Jeff, what kinds of things do you look for to “trade the trader?”

2.  Tom:  Greetings Jeff, assuming we do get the “inevitable pullback,” what support levels would you be looking at to re-enter long positions?

3.  Jeff: Hey Jeff, I’m a paid subscriber and I do like your work.  Is Worden the main charting software that you use?

4.  Dharm: Do you believe it is a bear rally?  Or are you in agreement a bull trend has begun?

5.  Ken: On stops being too tight, where would you place percentage wise on entry?  How often do you adjust the stop once you’re in the trade?

6.  Ron:  Do you ever stay with the levered ETF’s more than a day, say a week?

7.  Julie:  I have lightened up significantly during the past three days.  The long I do have is an ETF.  How far down would you be comfortable seeing a pullback on the S&P?

8.  BullishBeauty:  Jeff, I do believe the correction is coming and I’ve lightened up as well.  Question is when a position gets to almost profit today, close it or hold til Monday?

9.  Charles:  For the rookies can you explain the price and volume you use?

10.  Tom:  Jeff, can you offer some relevant scanning criteria for day/swing trading?

11.  Dirk:  Hi Jeff & Charles…first of all thanks a lot for this great opportunity to share your knowledge with us.  I have a very general question regarding position sizing:  Given a certain allocation of money to swing trade, and based on that amount, a fixed amount (like 8-10%) one is willing to risk on a trade, is a large position (cheaper stocks) with a tighter stoploss preferable over a smaller position (higher priced stocks) with a wider stop loss?

12.  Brian:  What event do you think could cause the second leg down?

13.  Jon N:  I have a stock purchased as a medium to long term holding.  At what point would you consider changing this position and just taking profits (I am using trailing stops to protect profits)?

14.  Erb:  I have witnessed a lot of traders who I deem to be professional traders use terms like “I really just don’t have the feeling today” or another example would be what you just mentioned confidence.  I find these terms confusing as I do my best not to trade emotionally.  The chart is what it is, the price action is what it is.  So as a newbie again I find this quite confusing.  Not sure what is meant by the “feeling” or confidence if we are supposed to just trade what we see?

15.  George:  How do you build your watch lists for swing trades or longer?

16.  Juergen:  Jeff, I often get stopped out because of too tight stops.  I do this because I don’t want to lose money when I’m positive.  Any advice to change this (set a wide stop first and narrow it down when the stock moves in my direction)?

17.  Naif:  Jeff, can you name a couple of your favorite books on trading?

18.  Eric:  It looks to me like a blow-off top in FUQI.  Am I reading this right?

19.  John:  Jeff, to develop your style of trading, did you do backtesting or did you mainly use trial and error?

20.  Jay:  Can you speak a bit about how you track your trades, and do you use a trading journal?  Thanks.

21.  Benjamin:  Hi Jeff, thanks for doing the Friday chat and am really enjoying it. What do you make of the relatively light trading volumes in the last few weeks, especially in the face of rising stock prices?  Do you view them as bullish or bearish signs or neither?

Thanks for stopping by and I’ll see you here soon with more. Until then…

Trade Like a Bandit!

Jeff White

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