Wednesday, 28 January 2009

Trades 28/Jan/2009


WFC (gap up)

Standard break past OR then shallow retrace with trigger being the 7th. A NR3,NR7 inside bar pulback off the ema. The 9th and 10th candles show low of 19.70, but I wasn't stopped out, so they must have been data spikes. Took partial at 1R (near Fib Ext) then rest as trailing 1R later in the day.

ZION (gap up)

OR break and pullback with NR3 candle. Not an ideal entry this one, but managed to hang on to it for a partial at 1R and then rest was breakeven towards end of the day.


Anonymous said...

Hi AM, I also took WFC, but off the 5th, and was stopped out on the 13:00 pb. I was wondering, the low of your trigger candle is 19.98 and the low of the 13:00 candle is 19.91 - you gave a $20 stock a 0.07 wiggle room? Usually you work with only 0.05... or was it just luck?

TraderAm said...

Hello fir3ant.

For stocks at decade numbers ($20, 30$ etc) I add a few cents for my stop as they can move 10c away then come back. Just from experience really.

Having said that, a 1c away from being stopped is just luck I think. On other days I have been stopped out at 10c away then stock comes back. Sometimes it works in your favour other times it doesn't.


TraderAm said...

P.S > The 5th was a good entry as well. Did you get stopped out due to moving to breakeven ?

Anonymous said...

yes, I didn't hit a complete R, but it was very close and the stock had difficulties with the $20.50 level (remember NE at 28?). So I decided to move to b/o and got screwed :(

So basically, do you have any specific rule with regards to how many cents to add to the stop according to the stock price?
I usually enter 1 or 2 cents over the trigger price and put my stop 3 to 5 cents under it.