Oct 2, 2007

NOK - Short

I made money today and that's all that counts. Did a make a crapload?? No. Took two trades which were both profitable but the end result was only 1R. 1R... doesn't sound like much - and it really isn't - but it's also not -1, -2 or -3R. It's a positive result and that's the bottomline. I try to shoot for average and hope to get a couple of runners during the week. Haven't gotten the runners yet, but they will come. I actually contemplated entering BIDU on the 10-min chart (11:20 bar), but passed because the high/low spread was almost $2. A little too rich for my tastes. I think $1 spread is the maximum amount I'm willing to go and that still needs to be around 1% of the closing price. I traded CAL (Jamie-inspired trade) and NOK. Here's the NOK trade:

  • As you can see, price gapped down but then immediately started moving up
  • Price hit a brick wall at $37.50 and proceed to sharply decline
  • The 10 and 10:05 bar had nice volume on the decline which made me forget about the rise at the open
  • The 10:10 bar offered a brief pause in the decline and this is where price should've gone back up if it was going to
  • Entered short on a break of the 10:20 bar low with the fib. ext and S1 as the price target
  • Price moved down without a problem and I was able to exit at S1 with no problems... pretty smooth


Tom T. said...

oonr7 - When I reviewed the action today I saw CSCT and it looks much like your PHM trade yesterday with the inverted hammer off the 38.2% intraday fib. However, it is an OTC stock so mot marginable. Is this something you would have traded if it came up on your radar?

OONR7 said...

tom t: I see the entry you're talking about on the 10-min timeframe, but I don't think I would've entered based on how choppy price and volume was prior to entry. I also don't see a significant increase in overall volume over the 30 day average. It's a good entry point, but the rest of the puzzle just didn't fit.

Jerry said...

Any trade will profit (minus commission) is a good trade.

John S. said...

Where in the heck did I go wrong with VMW this morning? Stock was heading to 90, this morning, I bought on the pullback at $89.52, and then it sank back to $88.38 before closing today at 92 and change. . .I put in a stop loss order right below (at that time) the low of the day which was $88.60. . got stopped unbelieveable how that stock moves. .

00NR7, just a quick question, do you sometime place buystop order, where if, for example, at stock's intraday's resistance is at $35.50, you place a buystop order at $35.52? Just curious.

Thanks, John

Anonymous said...

just to let you know, don't get fooled by volume on any color bar..you may see high vol on red color and yet change the time frame and it MAY show green color bar w/ high volume..
just so that you know.

Anonymous said...

Any trade that net profits (profit minus commission and minus your earninng capacity /hr in your area of interest) is a good trade.

Anonymous said...

even if OONR7 doesn't use buy stop, john you are entitled to use it. So many traders use it. I hope you are not waiting for OONR7 to use it.

bl said...

You can always get back into the trade. I didn't put a stop on BIDU this am at 6/15" b/o a nice entry at the 5ema, marubozu. I made a few $ but poor exit...should have waited till candle closed below 5ema or 3pm reversal bar. GRMN 18/15" reversal bar for a few. Good to use 1 min chart for reversals with 5 and 13 ema. Nice Briefing naz premkts.

OONR7 said...

john s: sorry VMW whipsawed you... it happens. I do use stop limit orders ALL the time. I allow for a .05 cushion to try to ensure I get in the trade. So, if I want to buy at $50, my stop is $50 and my limit order is $50.05.

anon: just because other posters use anon doesn't mean you have to. I mean, I hope you're not looking for other people who post anonymously to change their name. And thanks for the volume tip... but I actually look at the 5, 10 and 15 chart simultaneously and I can see the volume action. However, if it looks really good on the 5 and my entry signal is on the 5 but the volume doesn't look great on the 15... I'll still go the trade. Once you start trying to justify your entry on multiple timeframes you can really confuse yourself.

greytrader said...

Prophet Scan is dyslexic this morning. Some values are yeterday's.