So my best trade of last week, although not my biggest gainer, was the trade I took in $AUPH on Friday.
This idea came from my night scan. After making a massive run in early March; $AUPH has been coiling in a tight range for weeks. Further it has a low float and is highly shorted. So I know a lot of traders will be watching for a break out from this consolidation.
Although it didn't quite make the break out I was looking for I was very happy with the way I managed trade.
1st Entry: So I made my first buy (500 shares @ $7.50) as the stock went from red to green on the day round 10:00 am. and it forced me to be patient as it went no where for about 1 hr. Since it never came close to my stop which was at LOD and my conviction in the trade was very strong I was patient. Also it did a similar thing on Thursday; small gap down...1 and 1/2 hour consolidation then break to the upside.
1st Exit: I sold 1/2 my position (250 shares) @ $7.72 into the $7.75 resistance level as at this point the stock was up 3 solid green candles in a row on the 5 minute chart plus running into resistance. After this sell I then adjusted my trailing stop loss to break even for the remaining 250 shares and allowed the stock to do its thing.
2nd Entry: With stock consolidating nicely beneath resistance and the $QQQ's doing the same just off all-time highs my thinking was that this stock could be setting up for a second leg higher and possible push to $8.00. With the profit cushion I had plus the setup the stock was forming I was confident about pushing for a home-run. So I added 400 shares @ $7.69 and in the process put my account on full 6:1 intra-day margin! Although I was fully margined my risk on this trade was minimal as my stop on the entire position was now at $7.62
Final Exit: The stock tapped $7.75 and consolidating in a 5 cent range for about 30 mins. This was exactly the sort of price action I was looking for. The intra-day chart had now formed what appeared to be an ascending triangle. So if it resolved to the upside; I was going to profit big. However, if it didn't I know it could just as easily tank hard. So I adjusted my stop to 1 penny beneath the low of the 5 cent range and was stopped flat on the 400 shares I had added but for a small gain on the 250 shares I was holding from the initial purchase.
Final Thoughts: I ended up making about $100 on this trade or about a 10% return on account but this trade had the potential to be a $300+ winner! These are the sort of positions I love to be; guaranteed decent profit with possibility of a home run if the stock wants to give it me. Overall I was very pleased about my emotions during the trade and I pretty much followed my trading rules perfectly. If you have a proven system and you follow your rules; profits will come! Focus on making good trade after good trade after trade and not on making money. Thinking about how much money you're going to make instead of thinking of making good decisions is what gets most traders in trouble. Focus on mastering the process not the outcome!!!
My Best Ideas for tomorrow:
$AUPH will be watching for a break of $7.75 and possible push to $8.00 then $8.50
$WTW I could turn out to be wrong but this stock just has that look. So I will be watching for the break of $24.50 for push to $25.20 and potential parabolic run up to $26. If I play this stock and it works out according to plan I might even hold a few over night for a possible morning gap.
$AFSI will be eyeing for a short around the $13 level if the markets are weak. Will be looking for a push down to the $12.00 support. If I do take this short play I would not be looking trim and hold partial for a bigger move unless the markets are absolutely bleeding. Dips are being bought up in this market and so I'd be cautious about over staying in short positions in this market.
$CLDR this recent IPO has been exhibiting some sick daily ranges. I will be eyeing it for either a red-to-green move or OPR break (ideally around $20.50) in anticipation of a run up to its all-time high @ $22.
$GIMO nice low volume pull-back and hold of support @ $38.00 following the recent breakout on news that a hedge fund manager has acquired a large stake in this company. I will be watching it for a follow through day on Monday. Would love to see either a red-to-green set up or OPR ideally around $39 for a possible run to the recent high of $42.00
Best of luck on Monday....CHEERS!!!