This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
UrAsia Energy Ltd. (TSX Venture: UUU) is a junior Uranium exploration company that trades on the TSX Venture Exchange.
UPDATE:
Chart indicates I sold at $9.56. I meant to say $5.96 !!!
1. Why did I take this trade?
The whole Uranium sector was looking bullish on Tuesday morning and I wanted to partake in that feeding frenzy. I bought UrAsia Energy Ltd (TSXV: UUU) when it refused to go down after the opening morning drop.
2. What was the initial stop?
My stop loss was just below the low of OR bar, at 5.21. I moved my stop up to 5.70 on Thursday night.
3. Why did you exit where you did?
This morning, everything sold off at the open, including my contrarian plays in Uranium. I was compelled to follow the rest of the herd. I sold on the break of a mini intraday support level @5.96.
4. Is there anything you would do differently?
The entry and exit was executed well, in my opinion. However, with such a tight stop, I should have pressed my advantage more, and taken on a bigger position size. I risked $0.07 for a gain of over $4 $0.68/share, but I was stupid and did not take the time to calculate an appropriate position size based on amount at risk. For an R=$210, I could have bought 3000 shares.
Beauty! Real nice.
Zoomie: Don’t congratulate me just yet. I made a mistake and screwed up the numbers, my gain is actually $0.68/share, not $4/share. I think I was looking at PinoyTrader’s blog when I was doing up this report.
LOL. PinoyTrader is good. I suggest everyone go through all of his trades. I did, and saved them for reference, including daily chart for each daytrade. It is not often a trader of his caliber shares so much.
I just looked at your chart and not the numbers ;).
Phileo: What is your source for the uranium sector bullishness you saw? A website or an index or something?
Prospectus: I maintain a tracking portfolio of 18 uranium stocks that I call my “Uranium Index”. More detailed information is all at my trading Journal under the label “Uranium.”
I think about 13 or 14 of them popped up on Tues morning, a good sign if you ask me.
I continue to monitor this tracking portfolio for any other opportunities.
For you Americans, the only uranium stocks available for trading is CCJ, FRG, EMU, and a couple of BB’s (URME, URRE, and URST). USU is technically not in the same sector, although it seems to be following the same patterns as the Uranium sector.