Sunday, March 28, 2010

Selling Some Stock Trading Books!

I went through my accumulation of used books and put them up on to sell. I have a ton of comprehensive books that have had a colossal impact on me and helped me in the learning process. I am trying to give back what I've received and am selling these books at pretty good prices.

Check out my store front if you wish:

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Friday, March 19, 2010

SOMX- Crazy Ride but Ended Well

So I broke my plan already. However, the trade did turn out well, very well.

I bought SOMX yesterday at around 12:55 PM Pacific time, 5 minutes before the close. I bought in at $9.20. I watched the stock move nicely; eventually hitting $10 which was a good time to sell for a number of reasons. One reason is that 10$ is a whole number and any time a stock approaches a whole number, it's a very cautious point. Second reason is I had about 30 seconds before the market closed and I wanted out. I really dislike holding stocks over night.

I went about setting up my order to sell at $10 and hit the preview before finally submitting my "final answer". For whatever reason, I don't know why, I never hit the submit order button right after the preview stage and ended up holding the position overnight. A definitely scary situation considering the stock fell all the way back to $9.20 after hours, wiping out all my paper gains. I immediately put in a limit order after hours at $9.10, .10 cents below my buy price. A tight stop price, indeed, but I wanted to limit the loss from my stupid mistake in case the stock decided to sell off at the open, I'd be out.

In the end, I was forced to hold the stock over night. The next morning I was watching pre-market to get an idea of what it was doing and was surprised to see it bouncing between 9.30-9.40. What was amazing was watching the stock jump .35 cents in 1 second immediately at the open. Before I knew it the stock hit $10.35, fell a bit and I hit the sell button and bailed out right at $10, which is the price I wanted out in the first place. A great end to a bumpy night; a 7.14% return!

The chart below is 2 days worth of intra-day data on 10 minute interval candles. The red and green lines roughly represent my entry and exit points.

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Wednesday, March 17, 2010

No Trade, Just Observing NNVC

I haven't been active lately, which is a good thing considering I have not seen anything worthy lately. No point in trading for the sake of trading because every time that happens money is always lost, guaranteed! So, I came across a pretty nice chart last night. NNVC caught my attention and I was a bit hesitant as I thought to myself this had an 80% of being a winner. I put the stock in my watchlist to trade this morning at the open. However, I overslept and completely missed the open and missed the nice little run the stock had at the open as well.

The chart I liked.

And this is what it has done so far. I'm particularly interested in the first 15 minutes or so; the nice run at the open.

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Saturday, March 13, 2010

Morning Breakouts: Trading Plan

I have a few other posts' here dealing with my trading plans in the past. The same idea permeates the plan throughout: morning breakouts. I tend to gravitate toward trading the open of particular stocks that I fancy. What I intend to write here is explain what it is I'm looking for and to record for myself and have a place to come back to and keep myself in check.

The technical part of the charts I'm looking for is quite simple. The stock itself should be in a tight price range over the last 3 months at least and be between 1 and 10 dollars per share. What will attract me is a nice large price spike accompanied by a huge volume spike to confirm the new move. The picture below will serve as an example of this idea.

One can quickly see the exciting price move, represented by the white candle, and the nice tall green volume bar. What I plan on doing after finding this particular pattern is watching the stock pre-market so I can get an idea of how it's behaving and see if there are any certain support or resistant barriers. That's my pre-market routine. My End of Day routine will be to first find this pattern, then look at the intra-day data and see what the support and resistant levels are and measure any pontential moves in between those ranges.

So far, this is a rough sketch of what my trading plan will be as far as selecting stocks go. Later on I'll be fine tuning my entry and exit points more than what I use now, which isn't really worth writing down.

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Tuesday, March 9, 2010

Making a Comeback with CHGI?

I've been out of the market for some time now and I thought I'd jump back in. I'm keeping this blog basically for my own records so I can see down the line what I've been doing, you're welcome to follow along if you so desire.

I bought CHGI close to the open, problem was I couldn't get my limit order filled due to the stock out running me, which is I good thing, I suppose. I bought in at 2.58, after recklessly putting my order in at the offer. Unsurprisingly, the stock fell 3-4% for where I got and made a nice rebound. When it hit around 2.87-2.90 needless to say, I was stoked. The bid fell to 2.82, I put in a limit order at 2.80 as insurance in case it did decide to fall I'd make out with a decent profit, if not, I could still ride it up.

CHGI sold at 2.80 for a 6.73% profit. Not too bad.

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