Wednesday, October 04, 2006

Today's Trades

I made 3 trades today (excluding the exit of my BRCD position prematurely).

First up was BBBY:

My trade in BBBY does not fit any of the high probability patterns unless you consider this a breakout (despite the avg. volume). So what did I see that made me want to buy it? It was the attempt to test yesterday's lows - this stock never even came close to yesterday's lows before building a series of higher lows. The action was well behaved, all the indicators were in agreement, low risk, and encouraging, so I took a shot at it. Bought @38.58 with initial stop@38.2. I will study this chart in the future to see if there is a high probability pattern somewhere in there.

Next up was AKAM:

My trade in AKAM made use of the dummy spot pattern. Like BBBY, AKAM was above the trendlines, trend was (and still is) up, low risk in the narrow range bars, volume was better than yesterday, the shot was there and I took it, bought @50.78, with initial stop @50. Sounds like the risk is quite big, but however, I like how AKAM is in a strong uptrend, and today could mark the resumption of that uptrend. We shall see tomorrow.

My last trade was AMR:
Like BBBY, my trade in AMR also did not make use of any of the high probability patterns. In retrospect, I probably should not have taken this trade, and should have waited more patiently for the break above 25. I remember now, I got sucked in by that series of narrow range bars during midday. I entered on the break above those narrow range bars @24.68, with initial stop @24.45. Oh well, 2 out of 3, you can't win them all!


Richard said...

Yep, AMR sucked me in, too. It was a low-risk setup, but ended up being disappointing. But, I managed to make a little money, so I can't complain.

Good job on your trades.

Phileo said...

Richard - ya, I noticed your post about your AMR trade yesterday nite! Funny how we are all hunting for similar setups.....