Feb 21, 2008

BPFH - Short

I was 1 for 3 today and you know what... that's just fine with me. I got stopped out of NTES (long) and took a loss in ONB (long) but did manage to partial out.
 
My big winner came from BPFH. I actually traded off the 10-min chart on this one. It really doesn't matter what timeframe you use, so long as you follow the same trading rules. So BPFH formed a nice 'failed reversal' at the ORL (bars 6-7 moved down, bar 8 moved up and bar 9 moved back down again).
 
I exited during the 1:10 bar as I was happy with the gain (tried to hold out till the fib. ext. but I just couldn't resist).

EDIT: Looks like I should've held on longer... dropping as I type.
 
 



7 comments:

anarco said...

Nice trade 00NR7! I really like the full execution of this trade. (BTW: I also played around with NTES today).
I would like to ask you about your exits: have you experimented with double exits like Jamie does? I am developing my own style so I am still experimenting, but I find that taking a partial at the initial target allows me to secure profits and also allows me to stay in the trade (if I feel there is still room for profits). This could have worked great with your BPHS trade today. Anyway, I am sure you have thought about this, so I would be interested in learning from your experience.
Thanks in advance.

OONR7 said...

anarco: thanks... and BPHS was a nice setup today and I'm glad I was able to spot it. As for exits... well, I wish they were easier to spot than entries. I think a wise course of action, especially if you're just starting, is to take a partial at the first reasonable price target. Depending on the setup of the chart, I like to take partials at 2R if I can. It's probably one of most annoying things to be up 3R in a trade then have to settle for .5R after a strong pullback. The exit strategy that I strive for is what X uses... wait till price spikes or closes above the 5ema (for shorts) then sell on a break of that high. I typically use the :15 chart to determine exits. If you made 2R everyday you'd be in great shape.
Take money, take money, take money till you can afford to let a trade ride.
Hope this helps.

anarco said...

Thanks. It is useful for me to understand other trader's methodology. BTW: the description of my NTES trade in on my site, did you enter at the same spot?
Cheers!

TraderAm said...

Nice trade. BPFH was a favourite of mine today as well. Fully agree with you guys about taking partial profits.
Depending on where the Fib Ext is, I tend to take partial at 2R or at Fib Ext or at $1 gain. I find it is one of the most difficult things in trading, to not get out too early because the fear of losing profits can be a strong one.

QQQBall said...

i had an order in on PQ near the ORH, but didnt fill. i thought it was going higher, but i hate to let an order sit, so i pulled it. i didnt really see much that i liked

bl said...

Most frustrating with RIMM today, the WTF market pulled the big cap gapper into a long tail. Stingy it was. Poor set ups I tried to force, expectations!

OONR7 said...

anarco: I was thinking of entering NTES where you did but I waited till a candle formed at the ORH. By the time I checked the daily chart it was too late to realize there was major resistance near my entry. I still would take the setup.