AKAM - getting out of hand?

[spikefader]

at first, I thought that I was going to have to hold it overnight, then finally... the chart began to act correctly. I agree that the action in the last part of the day is bullish, but this market is so iffy right now (like you said). I don't see how anyone can say, with certainty, which way the market goes for the rest of this week. I used your breakout line as part of the reasoning behind a long position today. Thanks. It took a lot of patience to make 1%. But I'll take it.

I'm going to keep AKAM on my radar.

Congrats on your 1% peanuts. But a couple of questions come to mind...

Do charts really 'act'? Aren't they more an expression of what 'is'?

Perhaps you meant to say "price began to act correctly"?? But isn't price action ALWAYS correct? Aren't the only 2 things worthy of grading on a scale of correctness i) the trade plan and ii) the trader's actions/executions relative to that plan?

But perhaps you meant to express to us that "price action finally proved my plan correct and so I closed the trade to take profit." But why close a trade early and prior to your original target when it is being proven correct? Especially given your indication that you would hold an poor "acting" trade overnight..

It just seems that you are breaking your original target plan for a reason that you don't stick to for your non-green or red trades. Why hold the non-performers and cut the winners short?

[peanuts]

Congrats on your 1% peanuts. But a couple of questions come to mind...

Do charts really 'act'? Aren't they more an expression of what 'is'?

Thanks... I really didn't make too much with it, however

You are correct- charts only show what was. Projecting future price action can be assisted by reviewing past price history, and having knowledge of general price movement by specialists... but normally, this only gives an indication of price direction, and targeting a price turnaround point (target price) is pretty close to impossible.

Perhaps you meant to say "price began to act correctly"?? But isn't price action ALWAYS correct? Aren't the only 2 things worthy of grading on a scale of correctness i) the trade plan and ii) the trader's actions/executions relative to that plan?

Honestly, my plan was to buy at support, as indicated by NBB. My plan of either half a point down or 2 points up was "max pain" or "perfect pleasure" not actual targets which I thought the price would certainly meet. I had all intentions to exit the trade by the end of the day anywhere within those ranges. I would have exited earlier if the price had reached +2 or -.5 prior to market close. My plan was a simple buy low, sell high(er), with protection of .5 (the max I was willing to lose for the day)

But perhaps you meant to express to us that "price action finally proved my plan correct and so I closed the trade to take profit." But why close a trade early and prior to your original target when it is being proven correct? Especially given your indication that you would hold an poor "acting" trade overnight..

With my plan being that I was going to get in and out in the same day, I wanted to go for a long position. I agreed with NBB regarding the level of support, so I made the trade at a point I felt comfortable. I know I'll get crap for this, but I have a good feel for reading intraday charts... everything about the action of the price led me to think that adding to my position will be rewarding by the end of the day. Nothing mathematical about it, I just "felt" it.

It just seems that you are breaking your original target plan for a reason that you don't stick to for your non-green or red trades. Why hold the non-performers and cut the winners short?

Which non-performers are you talking about? My MOMO stocks? That's a different trading plan and account portfolio. All my day trades are in a "special" account. AKAM got cut short today because I ran out of time... Today's price action seemed predictable... tomorrow's is not. When I sold, I was telling myself, "get out while you can"

btw: regarding my MOMO account. It looks like I may have to make some adjustments fairly soon. Moving 1/5 money out of it and into my mid-term account

[skiracer]

Congrats on your 1% peanuts. But a couple of questions come to mind...

Do charts really 'act'? Aren't they more an expression of what 'is'?

Perhaps you meant to say "price began to act correctly"?? But isn't price action ALWAYS correct? Aren't the only 2 things worthy of grading on a scale of correctness i) the trade plan and ii) the trader's actions/executions relative to that plan?

But perhaps you meant to express to us that "price action finally proved my plan correct and so I closed the trade to take profit." But why close a trade early and prior to your original target when it is being proven correct? Especially given your indication that you would hold an poor "acting" trade overnight..

It just seems that you are breaking your original target plan for a reason that you don't stick to for your non-green or red trades. Why hold the non-performers and cut the winners short?

Thank you Spike. God it's like you read my precise thoughts. Great entry but I thought not a fully taken advantage of trade. Who knows what tomorrow will bring but the chart did look good at the close today for holding into tomorrow. A close stop would have given some protection against anything that may have taken place in the afterhours or pre-market. Anyway still a winning trade althought risking alot of money to make a little when so much more to be made from that low entry.

[Runner]

Here is my look into AKAM

Monthly-uptrend in tact since 2002. This months bar thus far making new highs.
Weekly- appears to show nice reversal.
Daily- shows a few nice gap ups and I view this as a sign of strength. I don’t see a set up at this time to go long. I’m bullish on it back down to the gap. I would like to see more upward momo to clear old highs more then a nice orderly p/b. Sector action is weak but out of 93 stocks in the group AKAM is 1 of 25 that is up for a 1 month period.

Last peak to trough took it down 16.64% from 7/5/06 to 7/21/06. Last bottom from 7/21/06 to current price climbed 30.20%.

Overview:
Monthly-Bullish
Weekly-Reversal
Daily-wait
Sector-Bearish

[spikefader]

...With my plan being that I was going to get in and out in the same day, I wanted to go for a long position.

Which non-performers are you talking about?

peanuts,

By non-performers I wasn't thinking anything beyond this AKAM scenario.

Your reply seems to have highlighted the issue again. You said earlier "at first, I thought that I was going to have to hold it (non-performer) overnight, then finally... the chart began to act correctly". Yet in your last post you said it was always going to be a daytrade. You seem to have felt the need to hold a potential non-performer overnight cuz it wasn't giving you any profit. If so, I see a discipline problem there and I'm just tryin to lend a hand. Not trying to be argumentative or confrontational; just trying to help you sort out your planning and r/r reasoning, and perhaps any poor emotional response to a frustrating trade where you might be tempted to alter your plan purely because price isn't doing what you want.

If it's a daytrade great, keep it a daytrade, max pain, max pleasure, and take what the market gives you and close it out............but you didn't say that. You said you nearly held it cuz it wasn't moving. So I'm just questioning your discipline and reasoning, and maybe you'll step back and think about how you 'felt' about the trade today and how that influenced your intentions and actions relative to your stated plan that it was always going to be a daytrade. If it was always a daytrade then why did you nearly hold it? See my point? Turning a daytrade into an overnighter that experiences a gap down can be a very stressful and disasterous thing. If it's against your original plan it's even worse, for it shows poor discipline. And in all my own experience I know one thing to be true: to be successful, one requires self-discipline..... and one must trade the planned trade...not the emotionally modified trade.

Profitable daytrader = statistical edge, r/r parameters that favor, unwavering discipline with entry and exit.
Unprofitable daytrader = fly-by-seat-of-pants, make silly emotional mistakes, get boxing glove out to deliver uppercut to self.

Where do you lie between those two peanuts? You're daytrading stocks so you're exposing yourself to the stresses and rigors and burdons that go with it. Yes, you can pick good stocks, no question. Do you have the discipline to trade the plan though? From your posts that is unclear. And if there's one thing daytraders must do it's trade the stinkin' plan peanuts! Best to ya!

[spikefader]

Thank you Spike. God it's like you read my precise thoughts. Great entry but I thought not a fully taken advantage of trade. Who knows what tomorrow will bring but the chart did look good at the close today for holding into tomorrow. A close stop would have given some protection against anything that may have taken place in the afterhours or pre-market. Anyway still a winning trade althought risking alot of money to make a little when so much more to be made from that low entry.

Yep, peanuts timed it well today and I agree with you about "so much more". Clearly the type of chart that sets up for a swing long over a scalp. And I wait for better TA entries down the road personally. If peanuts scalped it for a daytrade then great, solid entry scooping profit......but it seems that his scalp plan got a little fuzzy there for a while First the fuzzy C and now the fuzzy scalp lol Daytrading for consistent profit is a tough venture and I'm sure peanuts knows that any criticism delivered by me is merely to help out and not tear down.

[skiracer]

Yep, peanuts timed it well today and I agree with you about "so much more". Clearly the type of chart that sets up for a swing long over a scalp. And I wait for better TA entries down the road personally. If peanuts scalped it for a daytrade then great, solid entry scooping profit......but it seems that his scalp plan got a little fuzzy there for a while First the fuzzy C and now the fuzzy scalp lol Daytrading for consistent profit is a tough venture and I'm sure peanuts knows that any criticism delivered by me is merely to help out and not tear down.

Well I would hope that any constructive criticism to an open post would be taken as a positive by anyone posting here. I agreed with everything you said as hitting the nail right on the head with this trade at least from my perspective.

[New-born baby]

Re-Entry today, Houston!

AKAM could very well offer a re-entry today--if Peanuts wants it. Perhaps an initial pullback followed by a decent move up.

[skiracer]

AKAM could very well offer a re-entry today--if Peanuts wants it. Perhaps an initial pullback followed by a decent move up.

That's another scenario that's entirely possible.

[peanuts]

Your reply seems to have highlighted the issue again. You said earlier "at first, I thought that I was going to have to hold it (non-performer) overnight, then finally... the chart began to act correctly". Yet in your last post you said it was always going to be a daytrade. You seem to have felt the need to hold a potential non-performer overnight cuz it wasn't giving you any profit. If so, I see a discipline problem there and I'm just tryin to lend a hand. Not trying to be argumentative or confrontational; just trying to help you sort out your planning and r/r reasoning, and perhaps any poor emotional response to a frustrating trade where you might be tempted to alter your plan purely because price isn't doing what you want.

... And if there's one thing daytraders must do it's trade the stinkin' plan peanuts! Best to ya!

Thanks Spike. You do have a great point. When I wrote that I was thinking that I might have to hold it over night; it was greed talking, and my ego telling me that I was right on the entry. I did have the plan, but I guess it was a loose plan. I should not let emotion get in the way. You've enlightened me, thanks.

[peanuts]

hey Spike,

Looks like I should have held over night. AKAM printing 39.14

[mystiky]

okay, made my AKAM trade

well, could not resist and joined the fun.

Shorted AKAM at 38.90 and covered at 38.61.

Boy, that felt good! But it would had been even better if I had made the trade with a 50K block.

[New-born baby]

[QUOTE=New-born baby]

I would say look to buy AKAM at the blue line.

I am not crazy about AKAM because we are going long in a downtrending market. However you have an excellent option chain. I would suggest looking to buy the blue line and selling the call options on this one if you need protection. The DEC $40 call will net you $5.90. If AKAM bust blue line support, sell her off or else buy an AUG or SEPT $40 put while holding the call. You'll make money one way or another.

Peanuts:
This market! Chop! CHOP! Now don't you feel good about jumping overboard before the rats finished eating a hole in the bottom of the ship? DOWN $.75 in the pre-market, so look for a total drop of $1.50 today.

[Runner]

I see AKAM triggered long off 39.44.

[New-born baby]

I see AKAM triggered long off 39.44.

Chop! Chop! Down! Now up! No, Down big! Now up big!