This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Wi-LAN Inc (TSX: WIN) is aspiring to be the wireless version of Rambus, and it trades exclusively on the TSX. It was after I closed out this trade that I found out about rumours that it was in talks with an undisclosed mysterious 3rd Party regarding a merger or being bought out.
1. Why did I take this trade?
About 2 weeks ago, I slapped an alert on Wi-LAN Inc. (TSX:WIN) at the $6.00 level. Yesterday, it gapped above 6, and naturally, my alert went off. I looked for any possible pullback from the open, but the buy volume was unusually large. So I just bought it @6.32.
Later in the afternoon, Wi-LAN pulled back after all the buyers were exhausted. I bought a second batch when it refused to go down any more, @6.43.
2. What was the initial stop?
Initial stop was @ the low of the opening bar @6.10. In the afternoon, I theoretically could have raised to to 6.20, but just left it alone.
3. Why did you exit where you did?
This morning, Wi-LAN sold off. As soon as I saw that there was no hope of challenging yesterday’s HoD, I promptly sold it @6.55.
4. Is there anything you would do differently?
I don’t think so, this was probably the best I could do for a swing trade, although I am open to any comments as to how to play this even better.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
February 7th, 2007 at 1:29 pm
I agree that you managed the downside and the addition to your position well. A profit is a profit!
One comment on how you could do better: What was your target? If you had a rule to take profits at ~3R you would have captured it. Not bad for a daytrade…
February 7th, 2007 at 2:34 pm
Hi Prospectus,
Thanks for your input. As you may have guessed, I did not have a profit target. I will have to give it some serious thought.