Milking the STOCK cows - learning the ins and outs
Posted: Thu Mar 18, 2010 5:17 pm
I've been trying to use the milk the cows system on one stock since the beginning of March with AAPL. I haven't had much success, and I'm wondering if there is something I'm missing to the whole idea.
Here are the rules from what I understand. Let's assume AAPL has gapped down from its previous close.
1) since AAPL gapped down, the first trades should be longs, after the price has reached the open +.1
2) once this occurs, enter in between open +.1 and +.2
3) stop should be set .15 - .2 from entry point
4) only trade longs until the gap has been filled. either way is fair game after that, but ONLY if the price crosses the BZ
5) only short when the price is below the open, only long when the price is above the open
6) exits - watch the price movement and grab what I can, though I am looking for .1+
Since the majority of my trades have been losses, I'm trying to figure out what I can do to limit myself more. Currently, I only trade until 11 AM. For a day or two I had been trading the BZ in both directions, regardless if the stock had filled the gap. That didn't work out too well. Is there a gap size that's too small to trade? Today I got whipped a ton, since the 2 cent gap was filled and one could trade either way.
I wrote a similar post on the Stock Fetcher forums, but it doesn't seem that many people post there. If any of you do use MTC on stocks, and have and tips, please let me know.
Here are the rules from what I understand. Let's assume AAPL has gapped down from its previous close.
1) since AAPL gapped down, the first trades should be longs, after the price has reached the open +.1
2) once this occurs, enter in between open +.1 and +.2
3) stop should be set .15 - .2 from entry point
4) only trade longs until the gap has been filled. either way is fair game after that, but ONLY if the price crosses the BZ
5) only short when the price is below the open, only long when the price is above the open
6) exits - watch the price movement and grab what I can, though I am looking for .1+
Since the majority of my trades have been losses, I'm trying to figure out what I can do to limit myself more. Currently, I only trade until 11 AM. For a day or two I had been trading the BZ in both directions, regardless if the stock had filled the gap. That didn't work out too well. Is there a gap size that's too small to trade? Today I got whipped a ton, since the 2 cent gap was filled and one could trade either way.
I wrote a similar post on the Stock Fetcher forums, but it doesn't seem that many people post there. If any of you do use MTC on stocks, and have and tips, please let me know.