Tuesday, March 22, 2011

Another narrow range day

The market didn't move much for the second day in a row. This indicates indecision, but also means markets are coiling, ready to explode to one side or the other. Now let's just wait and see which side this will be, up or down.

Three trades today, the first one from Stewie and two of my own.

First Stewie's, in ACI long on support 20MA & 50MA. I got out right before the close with a small gain. The stock was falling back to entry point and I didn't want to hold overnight, not worth the risk.
A missed a great call from Stewie, DANG. This one moved right from the start and ended strong (up +4% since the call!)

Second trade, long ARBA. I went in after the red hammer with SL just below. Got stopped out, price dropped 2 cent below my SL and then based and broke out. Ouch! I guess I got in too soon, next time better buy when price finds support on 20MA.

I went short STJ when price broke the 20MA. 2 mistakes: I was trading countertrend!! And second, better entry would have been the red hammers half an hour earlier. Of course, better not trade against the trend at all. I realised too late, but covered before my stoploss got hit.

The week hasn't started well for me and I kinda lost confidence today. Luckily I didn't react by overtrading or revenge trading. Instead I stayed out an monitored the day from there on. Although I did wanted to short FFIV at the break of the base (see chart below), but I saw it just a little too late and didn't want to chase price. That was a positive fact. Negative fact, I didn't make $1.50-2.00...

Tomorrow is another day!

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