Wednesday, December 8, 2010

Ideas for Thursday, Dec 09, 2010.

I will not be doing any more trading in my personal account for the rest of this month as well as January. However, I will share day and swing trading ideas nightly in the outline below. Hope you find this useful!

This is how I recommend playing these ideas. Identify the set ups (swing trades) that you want to buy as soon as the price level is touched. For these set an alert a few cents below/above this level so that you can buy/sell when the level is hit. Use either the daily chart or the 60 min chart to set your stop loss. Use the price action on the 60 min chart to trail stops. With this approach sometimes its best to take some profits on the same day instead of holding when you are lucky to get a huge day off the bat (eg. NXPI on the 3rd of December 2010).

For the others set an alert at the level and then wait for a pause or consolidation at or above the price level on the 5 min and/or 15 min chart. Get long off the 5 min/ 15 min chart and set your stop based on this chart too. Use the 5 min chart to trail your stop loss. If you are not stopped out then you can consider holding into the next day looking to exit into a gap or morning drive if you are so lucky or even hold for a longer period of time looking for a swing trade.

Currently the markets appear to be near the start of a new intermediate term up trend with many small caps and IPO's setting up in bullish chart patterns such as above. So I would also recommend trading aggressive position size and even trading options in some instances.

Good luck and good trading!

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