Saturday, March 5, 2011

Review of yesterday...

Before I review the set ups from last night's watch list, I just wanted to take a look at a trade I would have been in now had it not been for the FINRA rules with regards to use of overnight funds. The stock I speak of is $KONG. Take a look at what could have been:

I tweeted several times about this stock which offered a second buy opportunity on Friday on the break of $8.50 which I also tweeted about. Hope at least one person caught this beautiful trade.

On to the watches from yesterday. $MCZ did not trigger. So I would not bother reviewing this. First up is $GPR which I did trade. The chart below shows what I saw and the transactions I made:

I got filled right at the lows and then the stock reversed and pushed higher. It was not as explosive as I would have liked but if I were not stopped out at least I would have been sitting on a small profit.

The third stock on watch was $DPTR. This stock set up beautifully and I tweeted the buy opportunity about a minute before it broke out. Too bad I could'nt take the trade my self as I had no day trades left and would not have been able to re use the funds in my account in any case as I had already use my last day trade earlier in $GPR. The chart below shows what I saw in $DPTR:

The final stock on my watch list on Friday was $HDY. I picked it up from my twitter feed and after seeing that it was breaking out of a beautiful base on explosive volume I added it to my watch list. I wanted to trade this stock but did not have the conviction as it did not have fresh news like I like to see and I did not want to risk a margin call as I had zero day trades left to use in case I was stopped out. Here is a chart showing the set up I saw and what ensued:

What I plan to do from now is to avoid taking morning trades unless I have more than 1 day trade left. Morning trades are inherently riskier on account of the extreme volatility usually seen on mornings. Also I am way more likely to use up a day trade from a morning trade than an afternoon trade since the close of trade is nearer. Generally, the more reliable set ups come in the afternoon (break outs from dips and consolidations) like the $HDY set up above for instance. So on days like Friday when I have only one day trade; WAIT FOR AFTERNOON SET UPS!!!

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