Lucky Number

Wave Count - SP

OCO Order and Trading Wave-3

From 时时是好时 - 请问雪大，如果主要作wave 3，那是不是说在我们判断到了wave 4和wave 5的阶段就要退出或者减仓。还是说不以猜测来操作，一切都等行情走出来再操作？

當偶們開一個新倉  要跟個OCO單:
1. LMT在第5波測量目標去獲利
2. STP(倒限單)在看錯時停損當行情順著偶們的操作方向跑之後  偶們跟著移動倒限單過去以保持戰果 ... 最後行情進入了第4波時 ... LMT和STP就很近了(市場價位被夾在中間) ... 碰到哪個就是哪個價獲利出場

From Arthur - Snowrider, Is it wise simply to stay off corrections? In another word, trade only the actionary wave. Trade wave 3 upon completion of wave 2, and, wave 5 upon completion of wave 4. Or, if one must trade a correction, trade only wave 3 (and 5) of wave C. And forget about the rest! I know, it is not possible to draw a hard and fast rule, but it seems that, in general, if the corrective waves are avoided, there are less errors?!!!!

Ideally, it's true to stay away corrections in order to make life easier and to make the best use of the trading money to trade only the fastest movements.  However, it is not that easy to clearly identify a corrective wave.  Also, if you are managing a large fund, wave-2 is where you use for accumulating and wave-4 for distributing because it is not possible to get fully loaded at the very moment when wave-3 is confirmed.  Most of the time the confirmation is coming from the penetration of some key area, and it's very hard to load much when the market moves very fast at that moment.

About the idea to "trade only wave 3 (and 5) of wave C", it is essentially trading the impulsive wave of a lower timeframe.  (Remember that we talked about trading the timeframe that we count the wave? in http://perfectew.blogspot.com/2012/08/from-arthur-snowrider-i-have-been.html)

A convenient order that you can utilize is called OCO Order (http://www.investopedia.com/terms/o/oco.asp).  When we establish a new position, we can attach an OCO order to do two things:

1. LMT at estimated wave-5 target to take profit, and
2. STP behind where the assumption of the trade becomes invalid
If the market moves in favor of our direction, move the STP order closer and closer.  When the market enters wave-4 correction, the LMT and STP are very close (where the market price is in between of those two orders) ... then you exit the position once an order is executed.  If the trading assumption is correct, and if your position did not accidentally get stopped out, you will be able to make profit of at least half the size of wave-3 (or even larger if wave-5 target is reached).

Wave Count

My Trade - 2012-08-W3

I am starting a new thread for the 3rd week of August.  All troops target on long term trading.  All percentages are the dollar amount allocations of each troop.  The following lists my positions as of last Friday:

Big Troop:
- IWM 20% (20%-08/08)
- SPY 45% (10%-07/05, 15%-07/06, 10%-07/11, 10%-07/24)
- Cash 35%

SAC Troop:
- EWS 15% (10%-07/30, 5%-07/31)
- XLF 22% (10%-07/30, 12%-07/31)
- QQQ 24% (24%-08/02)
- FAS 8% (8%-08/13)
- Cash 31%

If you have any question about my trading (long term, short term, stock, or FX/Futures), please PM, and I'll be glad to help!
Q. How to PM me?
A. If you are on a forum, you know how to PM me.  If you are on my blog, please put your email address in a comment (once you receive my private email, you can remove your email address from the post.)

My Trade for last week:
http://perfectew.blogspot.com/2012/08/my-trade-2012-08-w2.html

PLEASE JOIN MY BLOG AS A FOLLOWER.  I WILL PRIVATIZE THE BLOG ONCE WE REACH A SIZEABLE NUMBER OF AUDIENCE.  THANKS!