Wednesday, April 14, 2010

Will this be my worst month?

From late March to now has been one of my poorest trading periods. I have overtraded on two accords. I have been taking position sizes that are way to large and forcing entries prior to confirmation (part of the reason for this has been TOS executing my stop orders prematurely).

I have been working on these two problems. However, I have no idea what I am to do when my broker keeps executing my orders before the ask price hits the price level I have indicated I would like to enter at or above.

So right now I am pondering these problems and waiting on some quality setups to emerge. Hopefully the markets pullback soon and carves out some flags and pennants in powerful stocks like CELM.

Although the markets have been rallying steadily over the last couple of weeks, the Chinese stocks that broke down in the past few weeks on earnings announcement have failed to form the kind of setups that I like to short.

However, there is one stock that comes fairly close that I may trade. It is ZSTN. Here is a peek at what the chart looks like now. The green arrows show where the stock broke down on what I believe was an earnings announcement. The white lines show where I will look to enter, place my stop, and minimum profit target based on the per share risk.

With the markets as "overbought" as they are now and with ZSTN banging up against former support area now resistance around the $8.00 mark, this trade looks good. Not an A trade though but good none the less.

Good luck and good trading!

No comments:

Post a Comment