Tuesday, 6 January 2009

Trades 06/Jan/2009

Initial Watchlist:

CERN (gap down)

Gap down stock from IB scan. After an initial recovery, weakness is evident on the 3rd bar. The 4th breaks the OR (also whole number) and then recovers. However we are unable to regain the OR on next candle. This 5th is bearish off the OR and whole number confirming these as resistance and NR7 bar. This is our short trigger.

Entry: 37.82 Stop: 38.10
Fib Ext: 37.02
1R=37.54 2R=37.26 3R=36.98

We fall nicely after entry and move stop to breakeven as the 1R level is passed. Was hoping it would reach 2R, but market was bouncing off oversold levels and so we take partial as the stock also recovers. The rest is left to run and is stopped out at breakeven on the pullback. A bit of a shame as it then proceeded to fall to the Fib Ext level. Overall just a small gainer +0.75R.



Anonymous said...

nice. I has a nice week but today had a loss in LH & GRMN.

lemme ask you have you decided on any minimum time that you must hold on the stocks before you cut losses as many times stocks go on to be winners. One trader told me that min he holds stock at least for an hour but this increases R loss at times.

Closet Daytrader said...

By the time the 4th bar completes, I would have given up on it. The 4th bar tells me that Resistance is ahead. I'm glad it worked out for you. I have to keep that in mind next time.

TraderAm said...

I don't have a time limit as such. I have my stop set when I enter a trade and this is moved to breakeven if trade goes in my favour.
It will either hit my stops or hit my take profit points. Anything that remains will be closed at end of the day.

OONR7 said...

How is Tradestation coming along?

TraderAm said...

Hello 00nr7.

Tradestation account opened and funded. Although not enough to satisfy pattern day trade rules, so number of trades will be limited initially.

Now I just need to spend some time on coding up the scanners and setup patterns that I use. Then it will be all systems go....I hope :)