This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I took 8 trades today. Sounds like a lot, but they were all good trades, even though only 4 were wins. Not a single boneheaded play in there! I accept my performance–I didn’t bank coin like many others, but I traded well, so I won the battle with myself. I also pulled down +3.47R overall (about 1.5% on my equity), which follows when you trade well and get a bit of luck. Since trying to accept myself where I am in trading, I’ve been racing less, been less desperate and traded better. Step 1 of my Seven Step Plan is helping me so far. :)
Here’s a few charts:
I traded a Muddy play at the open in CBAK, Long:
It was up big in pre-market, along with anything else Chinese today. At the open, the bid rushed the ask at $6.34, and I bought with a stop at $6.22. CBAK took off, hitting $7 within 5 minutes. I sold half at $7.14 when the move stalled, and held the rest at breakeven. Well, the second wave didn’t come, so I was stopped out at my entry, but I still made +2.1R on the half of the position I took a partial on.
I’m liking the idea of trying Muddy plays right out of the gate, while I wait for the gappers to set up, which can take a couple of hours.
I also shorted PLCM as a Jamie-style Gap trade:
After the 4th bar closed weak, I shorted a break of that low. I had a bit of space before the OR low, so I felt okay taking the trade. Then it just got stuck at 25.50. Took a partial at the OR low, and then waited all… day… and covered the rest at the close. +1R overall.
Four more uneventful scratch trades, and then somebody called Richard, who told him to buy Bear Stearns, or something. I missed the whole run up, but it was so parabolic that the ghost of StreetSmack (who is not dead, but when he finally is, he’ll send it back in time to visit me today) told me to short the sucker.
Look at the 15 min:
First Attempt:
Got stopped out on a new high. -1.2R (but tiny position)
Second Attempt:
A few scary moments and then boom goes the dynamite.
Covered half at the 38% fib level when it started to bounce. I got whipsawed out of the second half, and it went on to hit my target at 122. Oh well, still a good trade! +2R. Would have been more, but I only kept my first entry on here, rather than piling on in like a normal SS short play. I wasn’t overly confident given the huge short interest in financials.
nice