This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Here at Move the Markets, you get the good and the bad. The profits and the losses. Here’s a couple of “dumb trades for me to take”:
1. Environmental Control Corp. (OTC: EVCC.OB). The world of penny stocks is new to me with Zecco, as I couldn’t trade them with my old broker without big commissions and price minimums. EVCC is an OTC stock, and it took me for a ride. I bought yesterday based on the 10/60 crossover, though a bit late. Today, the whole bottom fell out, and I’m lucky I got out as easy as I did–I raised my initial stop to $5.24 (breakeven) today to protect my profit, and I ended up getting filled at $4.99 for a loss.
Behold the tick chart:
It retraced all the way back to the 68% fib level! I saw a 30k share trade go through that just tanked it, and it must have hit stops all the way down. I really need a different swing trade system!
Trade Summary:
EVCC Long 10 Shares
Entry: $5.23, Stop: $4.25, Target: $7.74
R: $9.80, Exit: $4.99
P/L: -0.24R, or ($2.40)
2. Zi Corporation (USA) (NASDAQ: ZICA). Another 10/60 play I planned as a daytrade. As soon as I got in, it just went sideways all day. I got out at the end of the day (for a small profit) since my stop was so tight, and I didn’t want to hold till Monday. Yellow line is entry, red is stop:
Both of these trades were bad for me to take, as the risk:reward ratio is so low, even though they are high probability trades. I need to be able to use a MUCH tighter stop, which means I need to be able to take lots of daytrades, which I can’t at this time.
Trade Summary:
ZICA Long 90 Shares
Entry: $2.37, Stop: $2.25, Target: $2.85
R: $10.80, Exit: $2.39
P/L: 0.17R, or $1.80
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| ZICA |  |  |  |
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
