This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

F:

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

Trade 1: Ford Motor Company (NYSE: F)

As I said on my twitter feed earlier, I tried to scalp F on Thursday. I saw it moving sideways in a channel about a dime under nice, big, round $8.00. I thought I could get another dime out of it if it popped. Here’s the tick chart I used:

Analysis

I entered too early. I should have waited for it to break $8.00. I was watching the channel (the white lines in my chart) and saw strong support at $7.92, so the stop was at $7.90. I couldn’t watch the trade (that darn day job thing again), so I left my stop in place and got nailed. If I was watching, I could have at least got out at breakeven. Being a geek, I did like my position size, though ;)

Takeaway

This is yet another example of the fact staring me in the face that I shouldn’t be daytrading unless I can watch it full time. I have a system I like, and it’s uncomfortable to leave it to try to find a new one. I need to force myself to refrain from trading until I have a new system. Since I love to trade, that should motivate me.

Trade Summary:

F Long 314 Shares
Entry: $7.97, Stop: $7.90, Target: $8.10
R: $20.41, Exit: $7.91
P/L: -0.85R, or ($17.27)

Trade 2: Mamma.com Inc. (NASDAQ: MAMA)

I saw MAMA pop premarket on Thursday, and it saw some good premarket support at $5.70. I bought as it broke $6.00, planning to hold it through the next day to save me a daytrade. That locks me in to the position, which is a very bad idea, also technically known as a ‘1D10T’ error. Here’s the charts, with premarket included first, and then regular market timeframe:

Analysis

Risk comes through your ability (or lack thereof) to liquidate your position in a market. Since I was locked into a position of illiquidity, I was at substantial risk. I never should have taken the trade, not necessarily because the trade was bad, but because I couldn’t get out if it moved against me (which it did). I was very lucky to get a chance to get out this morning at just a 1R loss.

Takeaway

I need to buy at the close or save enough daytrades up to cover the occasional swing trade that goes against me on the entry day.

Trade Summary:

MAMA Long 30 Shares
Entry: $5.99, Stop: $5.40, Target: $8.00
R: $17.70, Exit: $5.40
P/L: -1.00R, or ($17.70)

Stocks Mentioned In This Article
Stock	Links
F	| |
MAMA	| |

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I traded 4 stocks Friday, all long. Doh. I bailed on one trade, MA, because I was not following my trading plan…..Murphy’s Law I guess.

Trade 1: BEST BUY CO INC (NYSE:BBY)

Trade 2: ARVINMERITOR INC (NYSE:ARM)

Trade 3: FORD MOTOR CO (NYSE:F)

Trade 4: STREETTRACKS GOLD TR (NYSE:GLD)

Stocks Mentioned In This Article
Stock	Links
BBY	| |
ARM	| |
F	| |
GLD	| |

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com