Thursday, August 11, 2011

Money in the bank! Solid day on SODA and CREE Summary

Daytrades were posted in real-time with updates. I don't usually like to post daytrades but I really liked these plays and felt that they would be excellent lessons in how to daytrade correctly while seeing them unfold before your eyes. So you get the opportunity to see what I see at the same time as the trade unfolds. It is very difficult to manage a trade and update the blog in real-time while taking pictures so I tried my best to update quickly.

Now to the summary:

CREE - Profits banked at $36.31 banking an average profit of 3X risk. This position fell alittle short of our 90 cent target area and I was to busy to update the trade here on the blog so I will just use the last post to update the blog which was when I moved the stop to $36.31 if you were following my techniques you have gotten out at $36.55.

I highlighted in green the arrows I was looking at for a trigger. The blue arrow represents the trigger and the red arrow was when the final lot was exited.

SODA - Exited the final piece at $46.95 bringing our profits to an average of $4/share. This is about 1.3X our risk but had an opportunity to trail it tighter when you hit $48.48 but again wasn't able to update the trade in the blog so I just used my last post to update the trade here.

The blue arrow was the trigger and the red arrow was when the final trade was exited. It took us two looks until we got the right trigger since the first look was invalidated by taking out the low first before rallying which is my first post on this trade.

Like my comment yesterday on the market it is not uncommon to see a retest of the lows in stocks as well as in the market before the rally comes. The key is knowing which one to take.

I base my returns off multiples of risk because I believe that if I'm right just 50% of the time but average more than 1X my risk then over time I will make more money. So if I could get 2X or 3X risk on half my trades then I could make good money.

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