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Sobek's Trading System
 
 

 

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MTrader Class (C) copyright MTrader 

December 11, 2003
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by Sobek


[09:39] <Gimmie>  Class Time !!!!!!!!
[09:40] <sobek> References sources: Ken's book, Master Swing Trader by Farley, Technical Analysis A to Z by Achelis
[09:41] <sobek> Glad to be here today ... excuse the slow typing not my forte
[09:42] <Gimmie>  no problem
[09:42] <wiz> we'll read slow, sob
[09:42] <sobek> what i will do is take questions later after i give an overview of my start of day
[09:43] <sobek> Basically, listen to CNBC and Bloomberg on the TV
[09:44] <sobek> Check the Briefing.com site for news also
[09:44] <sobek> read Ken's notes as well as phl's notes
[09:45] <sobek> I have a few favorite stocks that i follow nothing more than 10
[09:45] <sobek> trade only a max of 3, generally 1 or 2 during the day
[09:46] <sobek> a lot of my trade choices are based on Ken and Phil's insights and the pre-mkt action
[09:48] <sobek> screen setup is as follows: %R (period 12), %K (per 14), % D (per 14 / 3)
[09:49] <sobek> +DI (per 14), -DI (per 14), BB ( 14 and 1.85 std dev)
[09:50] <sobek> OBV, EMA (per 8) SMA (per 20), SMA (per 35) , SMA (per 50)
[09:51] <sobek> MF, Pivots (S1, S2, Pv, R1, R2)
[09:51] <sobek> all these are set up for one (1) minute increments
[09:52] <sobek> any questions at this point?
[09:52] <wiz> nope...I'm fascianted...speak on
[09:52] <dan> so many lines on each ?
[09:52] <wiz> fascinated
[09:53] <sunlight> I assume your tech analysist indicators explained in your reference, sobek?
[09:53] <sobek> definitions can be found in the ref books along with application
[09:53] <sunlight> excellent
[09:53] <Gimmie>  ok
[09:54] <sobek> my screen also has the indexes for SOX, NAS 100, COMP, S&P
[09:54] <spar> here is a glossary you might find useful:   http://stockcharts.com/education/IndicatorAnalysis/index.html
[09:55] <sobek> Also TRIN, TRIQE, TICK, and futures for S&P
[09:55] <Gimmie>  thanks !
[09:56] <sobek> the indices give me an overall view of how the market is going before i enter a trade
[09:57] <sobek> as i said, pre-mkt action gives me 2 or 3 trades to consider when the market opens
[09:58] <sobek> at the mkt open, i watch for 2 or 3 trade options using the MF as my initial guide as wel as the indices
[09:59] <sobek> MF is an excellent guide throughout the trading day for me
[10:00] <sobek> about 10:00 or so, the stochastics begin to take hold and then i follow themfor trading
[10:00] <sobek> any questions?
[10:01] <dan> how do you use money flow?
[10:02] <sobek> my entry price is based on MF rising along with the indices
[10:02] <sobek> most of my gains are made in the first 2 hours of trading
[10:03] <sobek> later in the day, i use the stochastics for entry and exit
[10:04] <soishe> so following trends in the first 2 hrs, scalping in afternoon?
[10:05] <sobek> when %R, %K, %D are at the low point, ths is generally my entry, providing the indices are rising
[10:06] <fosback1> what period do you use for %R etc
[10:06] <sobek> also -DI has peaked and started its down trend
[10:06] <wiz> intraday stochastics for later-in-the-day trading...but early stochastics, like the night before...to predict trends, right?
[10:07] <sobek> fos, see the early entry
[10:07] <fosback1> sorry
[10:07] <sobek> yes, wiz
[10:07] <wiz> cool...thanks, sobe
[10:07] <mks> i am lost.. but its ok.. plz continue
[10:08] <sobek> most of my entries are are limit prices around 1/4 point increments
[10:08] <sobek> for ex., 34. 25, 34.50, 35.75
[10:08] <wiz> so you're talking higher-priced stocks...not $20 wonders
[10:08] <wiz> I meant $2
[10:09] <sobek> i don't trade below $15 stock ... just my feeling, nothin more
[10:10] <soishe> sobek, pardon my earlier interruption.  pls let us know when you're ready to take questions.
[10:11] <sobek> exits are the same way for me ... use limit price to avoid "bad" spikes and exit when the stochastics are above 70 to 80%
[10:11] <wiz> right on
[10:11] <sobek> how about queswtions now?
[10:12] <wiz> do you do any intermediate trading?  or just daytrading?
[10:12] <sobek> on fast moving stocks, i go in between the bids to be sure i get a fill
[10:13] <dan> what do you mean by that?
[10:13] <sobek> very little intermediate trade during this present mkt
[10:13] <wiz> actually, I meant more like 3-7 day trades as opposed to daytrading
[10:14] <sobek> it is rare for me to hold more than 3 days
[10:14] <wiz> ok, I getcha
[10:14] <soishe> you mean you split the bid/ask?
[10:15] <sobek> in between means that i put in a price to sell lower than the higher bid price
[10:15] <dan> lower than the inside bid?
[10:16] <sobek> yes, the split
[10:16] <soishe> that guarantees a fill
[10:16] <sobek> and, yes, lower than the bid price to get my fill on fast stocks
[10:17] <soishe> on stoch., do you watch for down crossings of OB to exit a long or up crossings?
[10:18] <soishe> up crossings of overbought?
[10:18] <sobek> my stops are based on what ylod, open price, and the levels and quanties are in the bid column are
[10:19] <sobek> yes, over bought and starting to roll to the down side
[10:21] <sobek> if i see there are bid quantities of higher numbers, this is also a consideration for me this give me a possible out
[10:21] <soishe> so down crossings of OB signals exit.
[10:22] <sobek> yes, but not too great for OBV ... just a monitor
[10:22] <sobek> any questions?
[10:23] <soishe> aren't you using MACD also?
[10:23] <woody> are you using realtick sobek?
[10:24] <sobek> no MACD for me ... the other stochas do the same on a one min chart
[10:24] <sobek> Cyber Trader only
[10:24] <woody> ah, can't find MR in RT3
[10:24] <woody> MF
[10:25] <sobek> S/W that come with CYber Trader is fine for me
[10:25] <Gimmie>  you are following the same stocks every day ?
[10:25] <soishe> thot you were also using PSAR too?
[10:26] <sobek> most S/W has MF, woody ... don't know about RT3
[10:26] <dan> i have mf on my reattick chart
[10:26] <woody> thats what I thought, EQ has it so does TCNet
[10:26] <sobek> yes, i try to follow the same stocks every day so i get a feel for them
[10:27] <sobek> missed KLAC this morning
[10:28] <sobek> btw, i usually trade 1K shares at an entry
[10:28] <sobek> sometimes 2 or 3K sh if it is a liquid stock with a good following
[10:30] <sobek> pace of the trade price is also important on L2 along with volume
[10:31] <woody> how do you buy stocks like SCHN with large spreads?
[10:31] <sobek> my success has been the result of --- not in any order --- Ken, Phil, Gimmie, Whale, and Doc
[10:31] <soishe> pace on schn seems kinda low but you seem to be nailing it.
[10:31] <sobek> and my ardent cheerleader Spar
[10:32] <spar> lol
[10:32] <Gimmie>  lol
[10:32] <sobek> SCHN was my only trade today ... i think
[10:33] <sobek> made a couple points
[10:33] <sobek> spreads do not bother me b/c i get out real quick with absolute stops
[10:34] <mks> dumb question, but how do u calculate pace, if u dont have a sophisticated software
[10:34] <sobek> if the entry is not going my way in 3 or 4 mins, i get out
[10:34] <mks> just by looking/ or some indicators...
[10:35] <Eubac> what is absolute stop, maarket?
[10:35] <sobek> pace to me is how the transactions are occurring ... changing over time
[10:36] <sobek> if i want out quick, i use a mkt stop
[10:36] <sobek> if i think i have time, i use a limit price to avoid spikes
[10:36] <Eubac> so, with a big spread and a quick drop, that oulc trigger a big loss
[10:37] <Eubac> could
[10:37] <Eubac> you do mean broker stop?
[10:38] <sobek> a mkt stop to me is a mkt price
[10:39] <sobek> yes, i have taken losses as much as a few point b/c i didn't set stops
[10:40] <Eubac> I would like to see an analysis of stops in a gig spread
[10:40] <sobek> btw, fast trades got me 33-plus points last week
[10:40] <Eubac> gig
[10:40] <Eubac> big
[10:41] <sobek> i can't explain the stop on a big spread other than it is something i feel
[10:42] <sobek> i try to look for patterns on a stock and make judgements base on the indices
[10:42] <Eubac> By analysis, I mean what a broker stop actually does, seems to dive to the lowes around if a mkt stop
[10:43] <Eubac> so, a big spread may best be handled by leaving it, yet you say it's ok for you
[10:44] <sobek> they don't bother me ... the big speads
[10:44] <Eubac> ok, thx
[10:45] <sobek> my temperment is that of a risk taker
[10:46] <sobek> don't do analysis to the point of paralysis
[10:47] <sobek> only use the stochastics and indices as a point of reference not the absolute end
[10:48] <Gimmie>  good advice
[10:48] <sobek> any more questions?
[10:49] <mks> sobek, dcc plz
[10:49] <spar> nice class sobek, thank you...
[10:49] <mks> clap clap
[10:49] <soishe> thx sobek.
[10:49] <Gregory> thx Sobek
[10:49] <mks> is there a clap clap sound..
[10:49] <sobek> btw, lisa did a writeup of Phil's use of MA's
[10:50] <sobek> she did a nice job
[10:50] <sunlight> nice class
[10:50] <Phi1l>  oops
[10:50] <KenWolff>  thanks sobek.. good class..
[10:50] <Gimmie>  thank yu sobek !!!!!!!
[10:50] <Gimmie>  you
[10:51] <barron> nice job, sobek
[10:51] <woody> excellent sobek!
[10:51] <Gimmie>  clap clap clap clap !!!
[10:51] <sobek> my pleasure

      

     

 

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