The Market Guys Blog » Q&A from the April 9 webinar

TMG Webinar

How to Generate Income from Your Stocks

June 4, 2010 // 52 minutes

The Market Guys will show you how you may be able to create income from your stocks with options.

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Investing Education Day

July 29, 2010 // Chicago, IL

Market Shots

PIN PRESSURE INDICATOR™

Using Pin Pressure as a leading indicator for setting price targets

AJ Monte, Chief Market Strategist for the Market Guys, has written a paper for the Market Technicians Association on the Topic of Pin Pressure.

This document was grounded in research conducted by the University of Illinois showing how Option Trading Volume affected the price of the underlying stock in which the option contracts where traded.

From this paper, AJ has developed the Pin Pressure Indicator™ which is a calculation that computes the combined open interest traded at various strike prices and uses this data to determine price targets for individual stocks as we approach options expiration Friday.

4 Q&A from the April 9 webinar

Posted on April 17, 2009 by AJ Monte

Q: Must there be a specific increment between my buy and where i place my sell stop? (Brian)

A: You can place your sell stop below the entry price in any increment – down to the penny. Unlike options, which have specified strike prices, the stop order may be placed at any price. Of course, remember that for a sell stop you want to place the order slightly below the stock’s support.

Q: Can you put more than one type of order on a stock?

A: You may place more than one type of order for a stock but you should do that as a conditional order. For example, if you want to place a sell limit above your entry price and a sell stop below your price, then you would enter a conditional bracketed order. This will cancel the open order that is left when the first order is triggered.

Q: At what percent would a trailing stop be considered too tight? (Ron)

A: The chart will have to give you that answer. What is too tight for one stock may be too loose for another. Evaluate the volatility of the stock you’re trading and allow for the normal daily fluctuations. When in doubt, allow for more room but reduce your position size so that you don’t violate The Market Guys’ 1% Rule.

This entry was posted on Friday, April 17th, 2009 at 3:02 pm. It is filed under Q&A, Webinars and has been tagged under Rick Swope, stop. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a comment or trackback from your own site.

4 Responses to “Q&A from the April 9 webinar”

From: Glenn Mitchell May 14th, 2009 at 4:31 am
I have watched all of your seminars on ET. I am almost done with the book and I signed up with Options Oracle. A few things are still confusing me. What chart should I be looking at for swing trades? A 100 day chart? Looking at different charts moves your SMAs and trends around.
From: Rick Swope May 14th, 2009 at 9:24 am
You’re right – the time frame will shift the MAs accordingly. We like to start with a 3 year weekly chart to get the big picture. From there you can zoom in to the 150 day daily chart. The idea is to see the overall view and then move to the time frame that you’ll be trading within. There is no “right” or “wrong” view – it’s all about getting the best picture and that often involves looking at a couple of time frames.
From: John July 14th, 2009 at 4:27 pm
Hi Guys,

Do most or all of your strategies hold true for investing in foreign markets?

Much appreciated.

John
From: Rick Swope July 14th, 2009 at 4:34 pm
Hey John,

They sure do! Technical analysis techniques are applicable any time you have a trading market – stocks, currencies, futures, etc. We teach these strategies with success in markets all over the world.

Thanks!
Rick