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

I got the idea for Wi-Lan (TSX:WIN) from a (few) previous trades that I made on this stock.
1. Why did I take this trade?

On Tuesday, I bought Wi-Lan (TSX: WIN) on the breakout to new ATH’s. There was decent volume to support the breakout.

2. What was the initial stop?
My initial stop was @ the LoD @7.35. However, I raised the stop to 7.55 just before the markets closed.

3. Why did you exit where you did?

I sold as soon as I could on market open.

After markets closed yesterday, I found out that the company announced some stock offering @7.0 ! Craps, that sucked. But at least they had the courtesy to announce it after market hours, so I could at least prepare myself to get out as soon as I could.

4. Is there anything you would do differently?

The only possible warning sign of this morning’s nasty gap down was that I noticed that there was increasing sell volume into the close yesterday, which of course led to follow thru selling into today’s session. The sell volume into the close was a little worrisome, and nagged me like a thorn on my side. I also remember observing the exact opposite behaviour in FSLR (ie. increased buy volume into the close, with follow thru buying into the next day’s session).

Is this a pattern? I have a hunch about this, so I will look out for this and keep a mental score, but if it’s true, then it is better to reduce my risk and do NOT hold overnight IF there is increasing sell volume into the close (it doesn’t even have to be a selloff, just noticeably increasing sell volume).

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

Wi-LAN Inc (TSX: WIN) is aspiring to be the wireless version of Rambus, and it trades exclusively on the TSX. It was after I closed out this trade that I found out about rumours that it was in talks with an undisclosed mysterious 3rd Party regarding a merger or being bought out.

1. Why did I take this trade?
About 2 weeks ago, I slapped an alert on Wi-LAN Inc. (TSX:WIN) at the $6.00 level. Yesterday, it gapped above 6, and naturally, my alert went off. I looked for any possible pullback from the open, but the buy volume was unusually large. So I just bought it @6.32.

Later in the afternoon, Wi-LAN pulled back after all the buyers were exhausted. I bought a second batch when it refused to go down any more, @6.43.

2. What was the initial stop?
Initial stop was @ the low of the opening bar @6.10. In the afternoon, I theoretically could have raised to to 6.20, but just left it alone.

3. Why did you exit where you did?
This morning, Wi-LAN sold off. As soon as I saw that there was no hope of challenging yesterday’s HoD, I promptly sold it @6.55.

4. Is there anything you would do differently?

I don’t think so, this was probably the best I could do for a swing trade, although I am open to any comments as to how to play this even better.

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