Tuesday, August 28, 2012

Sold DUST Pre-Market @ $37.85


Enough excitement for me. I took a modest 2.9% and 5.7% gain on my two positions as I saw what looked like a freight train coming straight at me. 

Fortunately the buyers were looking the other way. OUCH!

My TSI Trading record has been updated.

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4 comments:

  1. AnonymousAugust 28, 2012 at 11:35 AM

    Hey John, can you talk about the "freight train" in more detail?

    ReplyDelete
  2. John TownsendAugust 28, 2012 at 6:04 PM

    I was just looking at the change in short term momentum on both DUST and the gold futures.
    It told me that a tidal wave was off shore and going to reach land in 10-15 minutes. To my
    surprise the buyers did not seem to see it coming so I decided to hit them with my shares,
    run to my parked car, and drive uphill with one eye on the rear view mirror for giggles. Sure
    enough, $37.85 was that little top and price reached $36.63 within a couple hours.

    But fwiw, for the very short term trades the trick, substantially, is to size up
    previous and recent highs and lows. Price usually will retest these general areas,
    however briefly, and you need to have your trigger cocked *in advance*. The other thing is
    to use the TSI in creative ways so you can size up when your opposition is either strengthening
    or weakening. And even here one should be mindful of what is happening on several time frames.

    For example, though gold has been incredibly strong for many consecutive days now I felt the
    odds would favor my trying to *game* human nature. That is, at some point a faction of people would
    decide to *get theirs* by selling and taking profits. That is what I was waiting for and when the
    chance came I closed my trade. And to be very honest, a little luck always helps. :-) Thanks for
    the fun question.



    ReplyDelete
    Replies
    1. AnonymousAugust 30, 2012 at 6:34 PM

      Thanks John,
      As a follow up question, I've been wondering how you handle mixed TSI signals that can come from looking at the indicator over different time frames. Do you just have to view them all separately? Do you have a time period setting you find works best or any other method to sort through the data from different periods and interpret it in such a way that provides further insight into the price action of the given market? I'm just interested in any more information in general on further ways to interpret and utilize the TSI. I want to make sure I'm fluent enough in the TSI to read and comprehend all the insights it potentially provides. Thanks again, I've really enjoyed learning about the TSI and always enjoy reading your posts.

      Delete
  3. John TownsendAugust 30, 2012 at 9:19 PM

    hummm.... good questions and a lot to tell you. However, in brief, I have my own personal comfort level
    which I am sure is different from other people. For instance, I had my sale of DUST set with a limit order
    to sell at where I thought price would be expected to reach. That was the gap fill level of $40.65. Which
    we still have not quite reached, btw. But indeed, I sold sooner.

    Anyway, I have learned that when the sure money that I can take off the table is there for the taking, and
    I see some reason to believe it is going to disappear and soon, I take the gain and regroup. And honestly,
    if after I get out the stock goes to the moon, I could care less.

    All I think about is that I have experienced another profitable trade because my judgement is sound. And I
    have also learned that small careful baby steps can really add to larger success over time.

    But to more specifically answer your questions, I believe that each different time frame speaks 'TSI truth' and
    the trick is to understand what each time frame is saying then act according to the level of risk you are
    prepared to assume. Short term outcomes are played out on the short term TSI time frames, and so on.

    I guess one needs to first determine the general time frame they expect to see acceptable results and then focus
    one's attention on the TSI time frames that will tell you how your trading idea is playing out. At my best, anyway,
    that is *exactly* what I do.

    I hope my thoughts are helpful to you.

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