Tuesday, April 26, 2011

Update and watch list for tomorrow...

UPDATE

I am still not able to trade on account of my transferring accounts. However, I am leaning on just going back to my current broker Thinkorswim and delaying the switch for a while. Either way, I should be trading again by Thursday of this week.

Although we are quite clearly now in an intermediate term uptrend; the over all markets as well as many individual stocks are now very extended. So in my opinion, new long swing trades are more likely to stop you out than they were a few days ago as I anticipate the markets will either pull back for a day or two or chop around for a few days after the steep four day move. However, we could also see the less likely occur i.e. a further 4 -5 up days. So we need to be prepared either way but with the awareness that continued upside over the next few days is not very likely by reducing position size and/or risk on long biased swing trades!

WATCH LIST







My favorite set ups are $REDF and $SIFY short but I would look to play them with in-the-money puts as opposed to stock because they tie up less buying power than stock and give you greater staying power. Also please be ware that I have not looked up the earnings date of these stocks or if they have any other important news announcements in the near future. So please do your own research before trading any of these ideas.

Good luck and good trading!

3 comments:

  1. Hi Elin. I'm a new trader as well. I've been learning and following the markets since January as well as learning about penny stocks. I had an account at TOS as well so that I could learn their platform because it was recommended by lots of people online that trade the pennies. I hate the TOS platform so I've been looking for another broker. I'm set on going with choicetrade because it's only $5 a trade including penny stocks. But the only thing, I don't like is that you have to pay for real time information which isn't a problem since I plan on swing trading longer time frames with freestockcharts.com daily charts. However, for those volatile, very short term trades that penny stocks can be, I'm leaning on perhaps subscribing to a charting program like quotestream and hopefully not paying over $70 a month for real time pink and otcbb quotes, charts, and level 2....

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  2. Hey, thanks for the comment. I think I've heard of choice trade before but generally I would recommend staying away from those low commissions brokers if you plan to trade OTC,s and Pinks. You want to go with a direct access broker like Speed Trader or Interactive Broker that lets you pick your own route these low commission brokers do not allow you to do that and this can be disastrous when you are trying to exit an OTC stock that's tanking. I experienced this just yesterday with $LTUM when I was trying to exit it at $1.90 from $1.30 on my Thinkorswim platform. I never got out till $1.41!!! So please learn from my lesson and go with a direct access broker. I recommend Speedtrader!

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  3. In addition, you can get access to all the data you mentioned for free with Speedtrader if you generate a minimum level of commissions which I am sure you will. I have joined Speedtrader my self and I am now waiting on the completion of the ACAT transfer to start trading with them. Should be doing so by week after next the latest!

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