This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I finally pulled off a Trader-X play! I’m excited about it. :) I also closed one of my penny swings for a loss. I’m not excited about that. :( Here’s the details:
1. FedEx Corporation (NYSE: FDX)
I got FDX off my Prophet.net gapper scan, and watched the 30 minute chart for a low risk entry:
I also looked for potential resistance on the daily chart for trouble spots (black lines I drew):
I forced the entry kind of early since I didn’t want to miss the move, if it happened. Part of my justification was that the low wick on the fourth bar was caused by a single tick or two, as noted on this tick chart:
The tick chart also shows the price pausing at some of the daily resistance levels I drew. Interesting.
So I ignored that low on the 30 min. chart, and placed my stop as shown in the first red line in the tick chart. I moved it up to breakeven at 1R (second red line), and then had to go out for an appointment, so I left the stop at $177.00 even (the third red line). I came back, and it had passed the target, reversed, and hit the target again. I’ll take good luck any day it comes, and so I closed it out at the 138% fib extension. Successful X Trade!
This one was different in that the gap was smaller than some I trade, and maybe that made the difference in making it to the 138% fib. The only problem was that the stock was so expensive, I ran out of buying power and I had less than half the position size I needed! AARGH! Still, it feels good to make some big R’s :)
Trade Summary:
FDX Long 12 Shares
Entry: $116.35, Stop: $116.02, Target: $117.90
R: $3.96, Exit: $117.88
P/L: 4.64R, or $18.36
2. BroadVision, Inc. (OTC: BVSN)
I chose BVSN based on a stock screen I am working on, looking for stocks that have doubled, looking to catch another double from then on.
It closed strong yesterday, so I bought at the close with a very wide stop below the low of 2/12. Today, it dropped to very near the stop, so I got out to avoid a big gap down tomorrow. Reduce and remove. Of course I had a full 1% R size for this one :b The good news is that I’m holding a few others that are profitable or still near my entry.
Trade Summary:
BVSN Long 23 Shares
Entry: $1.93, Stop: $1.50, Target: $3.86
R: $9.89, Exit: $1.55
P/L: -0.88R, or ($8.74)
Thanks for reading!
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| FDX |  |  |  |
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
February 14th, 2007 at 7:55 pm
Does prophet.net offer this scan for free or do you have to be a member of one of their packages? Thanks
February 14th, 2007 at 10:21 pm
Bubs: You get some limited functionality for free (with a free registration). You can save two scan models for free. I have the free account, and I have two scans set up–one for gap ups and one for gp downs. The scans are manual, meaning you have to go run them; They don’t come in real time like Trade Ideas, though the results are based on real time data. Clear? :)
February 14th, 2007 at 10:36 pm
Somewhat understand. Basically I have to register for free and then set up the scans and save them. Then run them every morning before the market opens?
February 15th, 2007 at 3:13 am
Yes on everything, except that for Trader-X plays I run the scan at 10:00 Eastern, so that the 30 minute charts will have the opening range bar completed, and the 15 minute will have two. There are no valid X setups until after the first bar of your timeframe is completed, so I don’t scan until then.
Let me know if you get registered and you want my scan parameters, and I’ll post them.
February 15th, 2007 at 3:54 am
I use prophet.net the same way. It works perfectly for trading gaps. The percent of gap you enter in the scan measures the gap from the previous HOD; therefore, I enter a very small gap size.
February 15th, 2007 at 7:16 am
I think I got it. I will run it at 10 ET and see how it turns out. Thanks for all the help
February 15th, 2007 at 7:39 am
Prophet.net is a sweet subscription site. Even the lowest functionality pay level is awesome. But they saved the creme de la creme for the investools active investor course buyers - prophet platinum. There is a tool on there that find patterns for you and draws the lines in. I can’t remember what it’s called - prophet patterns I think. I used to work at investools so that’s how I know about it.
February 15th, 2007 at 12:42 pm
Hi Bubs, Jay, Prospectus, and Zoomie!
I publish premarket gap up/down lists on my blog updated between 8:00 and 9:30 am with links to Yahoo! and Google Finance. In addition the watch lists are provided as files for import into Interactive Brokers TWS and Quote Tracker. Import files for other trading software are also possible if someone can provide me the format of those import files. For example see (shameless plug) Gap List 2007-02-15.
February 27th, 2007 at 2:57 pm
[...] The biggest reason, though, is related to my recent FDX trade. I found a great low risk setup, but I didn’t have enough capital to trade the number of shares I wanted. [...]