Posted by Stock Online Trader in Short Selling, Watchlist on 03-09-2010
AENY is an OTC stock pumped by stock pumpers using promotional mailers. I shorted AENY @3.37 when it looked like the pump of its low was looking weak. Covered my position @3.18, playing it safe. This looks ready for morning panic, but I did not want to hold it overnight and risk my profits. Potential re-short if we get a spike tomorrow to 3.40 levels.
PRGO has been nicely selling off since last 4 trading days. I shorted it once it opened below 50$ today. It was much easy short, with higher risk reward. I shorted @49.94, with stop loss on break above 50. I had limited downside on my trade versus higher reward. My patience was well rewarded as it never breached 50$ and kept going lower and lower. However I did not keep my patience and covered way way too early @49.82.
POT is one of my regulars I play every now and then. It was trending up the whole day, but in the last 2 hours of trade, it got weaker and weaker. I took this opportunity to short POT @ 117.97. I was rewarded immediately to POT falling even more. I however covered my shorts @117.55, again being very early . It dipped below @117, where I should have ideally covered.
Important lesson learnt. Do not chicken out of winning trades and let it play out its pattern.
Generally every day I try to target 2-3 stocks and trade max 2-3 setups only. I do not like getting involved in multiple stocks and be distracted. Today was one of those distraction days. I made 5 trades.
POT was the wrong chart to go short. It was continuously uptrending. I made the mistake of shorting it, even though I shouldn’t. I was actually very patient with it and short @ 110.10, when it looked like it will go below 110 and sell off. I am holding this one overnight with stop loss @ 112.10. Hoping to get a sell off to cover into.
CSIQ was shaky in the morning but once it broke past 21.75 (days high) it never really looked back. I bought really late @ 22.20. Turns out I was not really too late, as CSIQ kept spiking. I sold almost in the last minute @ 22.77, pocketing decent profit.
VISN looks to be reversing back from its multiple days of sell-off. I am long @ 8.70, holding it overnight. Hoping for 9.00+ price action to sell into. Volume is on the lighter side, (I like stocks with heavy volume). Hope it doesn’t crack back. Stop loss 8.30.
FSYS also looks like it might be reversing. It has taken a big beating from 50s to 30s now, in a matter of few weeks. I am long @30.20, hoping for more uptrend. I really liked the way it closed at 30.50. Ideally looking to sell around 32 level.
SNDK was a buy for me on break above 27. I bought @ 27.10 hoping for more up moves. Unfortunately it dropped back to 26.80s. I am holding it overnight with stop loss @26.45.
Posted by Stock Online Trader in Watchlist on 02-10-2010
When the market is crazy and volatile with no clear direction, the best way to make money is to go scalping. Scalping invokes trying to achieve quick 20-30 cents gains and getting out.
To begin the day I shorted PCX @14.47, hoping for a breakdown. However after multiple attempts it would not break below 14.40. Not willing to risk a squeeze I covered @14.43. Turns out that was the right move. After that PCX spiked all the way to 15.20s. Later on in the afternoon I took a short position again @14.95. Once the 15$ mark was taken out, I was confident to go short with stop loss above 15. Turns out it was a good trade and I covered @14.74, gaining 21cents profit. Quick and nimble.
I found Diamond Offshore Drilling, Inc. (DO) while scanning for oversold stocks that were reversing back. I bought DO @86.65, hoping for a 1$ gain with stop loss at 85.90. After some initial back and forth, DO jumped to 87.30. I immediately raised my stop to 86.99 hoping for bigger gain. Unfortunately my stop was taken out. My execution was @87.03, giving me 38cents profit. I was aiming for 87.85 as selling point, below 88$ resistance which it eventually reached. However I got stopped out earlier. No regrets though
MEE is one trade I wanted to go long, but never did. It is notorious for crazy swings and I decided to play safe. I was aiming for going long on 39$ break. Had I entered the trade, I would have got a nice 50-60cent profit. MEE did fall back to 39 level. However I wasn’t interested the second time around since, it was trending down, unlike earlier when it was trending up.
