Wednesday, February 16, 2011

Update and Watch List for tomorrow...


Haven't updated in a while. So I will do a quick update and then move on the watch list. The only trigger from Monday's watch was $REFR which followed through nicely on Tuesday and could have been booked into the spike on the open for $0.35 profit because risk was only $0.10 ($8.25 entry with $8.15 stop)or this morning  for $0.55 profit. $DBLE, $ALJ and $KNKT triggered today. $ALJ triggered but did not follow through and hit the HOD thus should have been cut for a small loss; $DBLE triggered and followed through initially...rallied powerfully into the close but is still a hold. Shorts are not following through! So look to cover this quickly either way since it will no longer be a day trade and will free up capital for potentially better positions. $KNKT triggered and followed through some what but no big volume yet. I would suggest selling this on the open to free up capital for better trades unless it explodes with volume on the open and follows through.


I put these two shorts in in case there is a wash out in the markets (like 28/1 and 19/1) which I anticipate will happen soon if not tomorrow. It is very important that shorts are stayed away from unless there is very clear weakness in the markets as they simply are not following through!

As usual, stops go at the LOD/HOD unless there is some obvious support/resistance closer to entry that can be used for a stop loss. Make sure stocks are printing with consistency at or before the entry level before initiating any positions since low volume triggers are unlikely to break out.

For under PDT traders, do not put on more positions than the number of day trades you have available! You do not want to be stuck with a position thats losing more than you planned to lose over night or to lock your self out of your account for 90 days! In addition, unless the stock triggers your stop loss or has moved so quickly that you can book profits in excess of 3 - 4 times risk in a few minutes then do not use up day trades! 

Finally do not put more than 2% - 3% of your account at risk in any single position. In addition avoid holding more than 25% of your account in a single speculative stocks over night especially ahead of planned news!

Good luck and good trading!

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