Spike's Scientific Stock Analysis

[spikefader]

Greetings Spike,

As a newbie to the YM,with approx 40k cash with IB,what would be good starting amount of contracts if I can find a setup?I realize a stop is a must,and tight at that,but the leverage portion of the trade has me confused.How much is at risk per contract I guess is what Im asking?

Example,had I went long this am with a 60 point move,a reasonable contract amount for a beginner?

cordially ,and sorry for picking your brain.
Tom

I would strongly recommend you start very slowly and trade 1 contract on the conservative side. Do this until you are supremely disciplined with stop creation and expertly proficient with TWS executions. There will come a time where speed matters greatly and discipline matters even more.

Size can come after you have demonstrated the ability that your methods are working for you and your execution and stop protection and back up systems and hedging plans etc are in place.

You must remember that the YM has potential to spike or drops on light volume and you don't want to be overcommitted. Working slowly up from 1 is the wisest for a newbie. There is no rush; you will learn much from taking your time and watching how it performs and reacts to news, fat fingers, exchange closures, etc.

Good luck, and ask any questions at all. Oh, and EDIT: Congrats on the nice trade dude. The YM can chop about and take profits away quickly, but should you get on a great entry that opens up a buffer to hold for a multiday trending swing trade, it can be worth it. You have to weigh up market conditions and assess whether taking profits at the spikes is wise, or letting it run and hold with green hope. It ain't an easy decision. I often see my profit disappear while I'm looking for the trend move.

[New-born baby]

$20

LEA,

May 22.50 puts ?

That's a viable option, if you are convinced that LEA has not bottomed here.
Me, I fear that LEA has put in a bottom. The inverted head and shoulders point to at least a $20 move. If you buy the put now, and it does hit $20 and holds at $20, you lost money. If it moves up to $22.50, you lost money. If it falls back below today's price or further, you made money.

LEA,

May 22.50 puts ?

Greetings Spike,

As a newbie to the YM,with approx 40k cash with IB,what would be good starting amount of contracts if I can find a setup?I realize a stop is a must,and tight at that,but the leverage portion of the trade has me confused.How much is at risk per contract I guess is what Im asking?

Example,had I went long this am with a 60 point move,a reasonable contract amount for a beginner?

cordially ,and sorry for picking your brain.
Tom

Will look even more tempting if/when it gets through its 20-day EMA.

[spikefader]

MYGN really tempting r/r here folks.

Spike's Setups

[New-born baby]

Thank you $pike

re earlier http://img134.imageshack.us/img134/631/amnmar291ks.jpg

AMN anticipate the head setup r/r of 8.5 is ok.

Okay, now I get it Your chart helped me out. You are anticipating the head and shoulders. DOH! If I only had eyes to see! You taught me something today! Thanks!

PS Took the CNQ trade today.

[spikefader]

Thanks for confusing me??

lol sorry. Newborn actually replied to your question but you thanked me. hehe np!

[spikefader]

re earlier http://img134.imageshack.us/img134/631/amnmar291ks.jpg

AMN anticipate the head setup r/r of 8.5 is ok.

[alice4321us]

Confused

Hey alice, surely just an unintended error. You can edit your post to read Newborn as the one you're addressing

Thanks for confusing me??

[spikefader]

$pike
LEA has a possible inverted head and shoulders pattern. Do you like it short?

Chart-wise the pop today to channel resistance was a valid pattern to short. The r/r was there for Tom's play, so while today's high stands in place yes, I like the short bias for it. It was Burnt Toast candidate in recent times, but IB lists it as unshortable and Mytrack doesn't have shares short for it so I guess it's "Next!" hehe

[spikefader]

Spike

Thanks for once again educating me and saving my life
How about SCST, this has been in uptrend and sitting on 20 DMA (I know you don't care abt those MA's too much), but seems like this has good potential for a breakout.

Hey alice, surely just an unintended error. You can edit your post to read Newborn as the one you're addressing And Newborn, thanks for posting opinions and help in this thread dude. I do appreciate it.

[spikefader]

Further on AMN; Newborn makes a great point. Trying to catch tops is tricky; and this issue is hitting all time highs and is a freight train.

But one can't deny it's meeting criteria I look for to exit long/take profits, and thus it's a valid short area.

Just a matter of making the r/r worth it.

I'll post any pattern I see to confirm a short entry.

[New-born baby]

Lea

$pike
LEA has a possible inverted head and shoulders pattern. Do you like it short?

[alice4321us]

Thanks for saving my life

Alice,
No. Don't step in front of that speeding train. You'll get run over.

What you need to know is the difference between shorting into strength (as Spike teaches) and shorting into a freight train. The difference is this:

When a stock is in a downtrend, then you short into any strength it shows.
When a stock is in a bullish uptrend, if you short it, you'll get smashed by the freight train.

Spike

Thanks for once again educating me and saving my life
How about SCST, this has been in uptrend and sitting on 20 DMA (I know you don't care abt those MA's too much), but seems like this has good potential for a breakout.