This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Two trades today. ALU was a trade just in case the market kept tanking. Bad idea as you will see. I soon forgot how bad of a trade it was after BIDU went my way ;).
ALU:
BIDU:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
September 17th, 2007 at 6:07 pm
Zoomie,
Awesome BIDU trade!
I also traded ALU. Took an early short and covered after three red bars. I wanted to get back in as I thought it would have second leg down. Placed sell stop order below base at $8.53. It didn’t trigger.
September 17th, 2007 at 6:10 pm
I didn’t articulate correctly - Below $8.53 base is what I meant.
September 17th, 2007 at 6:40 pm
Nice trades. I Like.
September 17th, 2007 at 7:09 pm
Thanks LP. Jamie, so I wasn’t crazt taking ALU ;). I figured it may have another leg down too, but I also thought I might be chasing the market. Your trade plan was THE plan…stop order below the base. Thanks for the input!
September 17th, 2007 at 9:45 pm
Great job, Zoomie! Nice catch on BIDU.
September 18th, 2007 at 5:20 am
[...] After the longest stretch of lackluster market action that I can remember, I took two trades today. One was a long position in BIDU which I was stopped out of only to see it explode through the end of the day. It looks like Zoomie was able to time this one correctly. [...]
September 18th, 2007 at 7:35 am
me like BIDU too a lot. Nice trade!
September 18th, 2007 at 7:48 am
Could you please explain your use of fib on BIDU?
September 18th, 2007 at 9:50 am
Thanks for the comments traders. Nothing fancy, just sell at my target ;).
David: I draw the fibs (for longs) from the previous day’s low to the 15 minute or 30 minute opening range high, depending on what timeframe I am using. I look at daily chart for targets as well, but BIDU had blue sky above.
September 18th, 2007 at 3:50 pm
Zoomie: Do you use this approach to set your target for an opening range breakout or is this part of some other strategy?
September 18th, 2007 at 8:30 pm
David, yes, I use these fibs for opening range breakouts. I generally look at the 15 and 30 minute O/R high, then set my fibs accordingly. It is not an exact science, but it does help one to not sell too soon. I will use daily pivots as targets when they are there as well. I will also exit when I see a evidence of a reversal with volume. I know if I sell at my targets, and cut my losses, I will make money at the end of the month.
September 19th, 2007 at 12:47 pm
Zoomie: thanks for the explanation and for your patience with a newbie
September 19th, 2007 at 9:53 pm
No worries. Go to Trader Xs site and look at his archives if you havent already.