Monday, January 10, 2011

Shake Out, Misplaced Stops

Today was a day of shake outs and misplaced stops

SPWRA
I tried to play the momentum once the HOD @ 14.35 was breached.  A small move up to 14.42 was followed by a quick move down.  I gave the trade $0.10 risk to the downside, and was quickly stopped out.  Tried a second time once 14.42 was breached as the HOD.  Stock attempted multiple times to run, but volume was low.  Then a nice break down.  Based on the initial trade, I allowed $0.15 risk, and was quickly stopped out before the stock ran and closed @ $14.62.

1 - Don't trade between 11:00-13:00 MST
2 - Have a better plan, work on placing better stops

JOE

Swing trade Joe 01/05/11 @ $22.22.  Sold 2/5 on 01/06/11 @$23.13 and 2/5 on 01/06/11@$23.10.
Joe broke below $23.00 this morning, making a morning low of $22.80 and bouncing back.  I set a stop @ the days low, and it was quickly hit, before breaking out to $23.50.
(Traded as low as $20.60 in AH news.  Only had 1/5 position left, but I don't feel so bad about my bad stop now)
1 - Improve on placing stops
(Still need to improve placing stops)

1st negative day of 2011.  

I am realizing that I need a better plan before entering into trades.
1. Have a predetermined risk
2. Have a predetermined upside
3. Have a better understanding  of the resistance and potential targets

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