Review of Chapter 5 – Shorts and Faders – @investorslive Tandem Trader

Link to notes and review of Chapter 1

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Link to notes and review of Chapter 3

Link to notes and review of Chapter 4

Link to notes and review of Chapter 5

Link to notes and review of Chapter 6

Link to notes and review of Chapter 7

Link to notes and review of Chapter 8

Link to notes and review of Chapter 9

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Summary:

chap5

Another very solid chapter, especially if you are new to shorting or working on identifying low risk short setups this would be VERY useful to you. The late day fade has been my bread and butter for 5+ years so a lot of this was very familiar to me. That being said while I was not glued to my seat during the live trading getting into the setups, I found watching how Nate manages trades while in them, and working with exits very interesting.

I had not realized how patient he was with a lot of these types of trades. When in the chat room or twitter it seems he is moving in and out every minute. But in reality, he is picking areas of support and resistance and managing the trade between them.

I really found a lot of value in Cam’s voiceovers in this chapter as well. He has voiceovers in every chapter, but I really appreciated his input in this segment. Its a good idea to produce it the way Nate and Cam have. You can tell Cam watched the whole thing several times and picked up on ambiguous or unclear moments and interjects very useful input.

I’ve said it several times, but still loving the “risk management” protocols I’m picking up. Again I thought I was very disciplined and explicit in my stops and plan. In reality I was doing a very poor job. But the great thing about this DVD is its helping me spot and fix some of the weakest parts of my game.

Notes:

Chapter 5 – Shorts and Faders

Fader – good way to set risk at HOD

Lot of good examples of paitience
Good voice overs by Cam, lots of value add
VERY useful examples and explanations of “waiting for backside of the move”

-GPRO – intraday para and lated day fade
Need to get a feel for range
bigger range, less size, need to adapt
trading para’s need to cover into any wash

A trade without a plan, isnt a trade at all.

Watch for lower highs for fade, HOD reject

-PBR

You can always get back in a trade, don’t hold bad trades, to much hassle and stress.

Good lesson on not turning winners into losers.

More patience with big daily chart runs, healthy for pullbacks, take advantage of it.

Good real time of LOD – G/R washout – Whole dollar amount – good example of what Nate talks about “Lining up multiple setups”

Whole number washes, great exits.

-ATTBF

Wedbush locate short utility.

Wait for speedups, and thin up on spread.

Good Level 2 example. Bids coming in, and offers moving away.

Only want overextended stocks, not stocks that are just up big.

-ISR – ITCC

Let them run, then put in a lower high. Sets risk for fade. No peak, unlimited and unknown risk.

WAIT FOR BACKSIDE!

Lower highs really bad for OTC’s, good risk/reward on short

So much easier to set risk and size on backside. Frontside may work but its a headache and you will invariably cover emotionally.

If you make a mistake on letting a loss run, always cover into a pullback.

“All that matters at the end of the day is doing the least amount of work for the most amount of money”

-PVCT

Really like Nate speaking outloud the plan, very useful.

WHen unsure, take it off. you control your trades not the market.

-MNKD

Look for big overextended charts

-TWTR

Good HOD reject example.

-WWE

adding into winner

One thought on “Review of Chapter 5 – Shorts and Faders – @investorslive Tandem Trader”

  1. I’m always confused by the seeming contradiction between waiting for the backside of the move and shorting into a parabolic move. Anyway thanks for your summary and excellent insights. I hope you’ll do reviews of the rest of Grittani’s DVD as well.

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