This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Here’s another pile of trades I closed out today–one Trader-X inspired daytrade that went awry, but in a good way, and four other swing trades of various degrees of sanity, brought to me by Zecco’s commission-free trading. I’m trying to get something going where I risk the whole position in a volatile penny stock hoping for a home run–some with a stop of basically zero. (He’s off his rocker!) But since the whole position is only about 1R total, swing for the fences! This only works on a small part of my trading account, so I still try to daytrade in a sensible manner with the bulk of the account funds. It worked well today, and I’m fine tuning things, so I’ll keep you posted in how it does. NOTE: I do not recommend to anyone to take these trades. Probably not even me!
1. New Century Financial Corporation (REIT) (NYSE: NEW)
NEW got kicked in the junk based on accounting restatements and a recent rise in foreclosures. I wanted to play the dead cat bounce. Here’s a daily chart:
And the intraday and tick charts:
I was shooting for the 32% fib retrace. It went against me, but not to the point of my real stop at $16.50. I say real stop, because I screwed up the position size, and wound up with more risk than I wanted–I revised it to the $16.97 shown below. Then today it opened back in the money, and went down again. I sold as it broke $17.00 at about -1R. It later shot back up to a profitable position! Whoops. Just poorly played all around, though the trade premise may yet prove to be right…
Trade Summary:
NEW Long 15 Shares
Entry: $17.63, Stop: $16.97, Target: $22.00
R: $9.90, Exit: $16.92
P/L: -1.08R, or ($10.73)
2. Subjex Corp. (OTC BB: SBJX.OB)
Bought based on a new high on volume. Sold for 100% gain. Sounds impressive! P/L: only $4.00–that’s 0.4R in my usual daytrade size, though.
A more clear chart from Yahoo:
Trade Summary:
SBJX Long 50 Shares
Entry: $0.08, Stop: $0.01, Target: $0.25
R: $3.50, Exit: $0.16
P/L: 1.14R, or $4.00
3. Onyx Pharmaceuticals, Inc. (NASDAQ: ONXX)
Big gap, bought based on making a new high. Sold ’cause it looked tired on the tick chart.
15-min chart:
Tick chart:
Trade Summary:
ONXX Long 1 Shares
Entry: $20.43, Stop: $10.43, Target: $30.43
R: $10.00, Exit: $25.95
P/L: 0.55R, or $5.52
4. Amish Naturals, Inc. (OTC BB: AMNT.OB)
Gotta love electronically trading a stock with “Amish” in the name! Another dead cat bounce fib play that actually worked. I entered from a break of the open, and closed at the 62% fib retrace:
Intraday:
Daily:
Trade Summary:
AMNT Long 10 Shares
Entry: $2.45, Stop: $1.45, Target: $4.00
R: $10.00, Exit: $3.32
P/L: 0.87R, or $8.70
5. Darden Restaurants, Inc. (NYSE: DRI)
Trader-X inspired daytrade that I screwed up on in my favor. I traded this one from the tick chart instead of a standard time chart, mostly because I missed the NR bar entry on the 15-min chart:
I had a stop order in at $42.62, and near 1R profit I wanted to move it to breakeven. Zecco just introduced trailing stops, so I tried to change my stop to a trailing stop on the fly that would lock in the breakeven, and trail the profits by 1R. Apparently that doesn’t work, as my stop was immediately triggered and I sold at market. Lucky for me, since it all went south shortly after! I’ll admit when I’m lucky as well as when I screw up. Hopefully skill will come in time.
Trade Summary:
DRI Long 35 Shares
Entry: $42.81, Stop: $42.62, Target: $43.13
R: $6.65, Exit: $42.96
P/L: 0.79R, or $5.25
Please feel free to comment!
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| NEW |  |  |  |
| ONXX | | | |
| DRI | | | |
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
