Wednesday, December 06, 2006

Wednesday's Results

Despite getting smacked around by BIDU yesterday, I jumped back in today. I mentioned before that I planned not to buy calls within the first 15min. of market open. So then why did I break away from that plan? Because the bid/ask on the options were not jumping around and misbehaving like how I have seen so many times. The setup looked decent - it broke above yesterday's HoD and the resistance level @122, and the 10 candle EMA was intact. So, I decided to take another crack at it.
So why did I not heed the warning when the 10candle EMA was violated? This is where the mind games began. I was becoming wary of my tendency to overtrade too much lately, so I was looking for ways to rationalize the desire to continue to hold onto this one. BIDU still looks strong on the daily chart, and I am beginning to get a good feel of how it behaves, so we'll just have to see how it goes.

I bought UARM based on the HighChartPatterns (HCP) newsletter. I was a little late to the party, but saw that the stock was not showing signs of failing the breakout. So I decided to go for it. Volume picked up and was sustained for the whole time after the breakout.

I also bought NTRI@73.75 for my wife's retirement account based on the HCP newsletter recommendation.

Overall, I felt that I did well today, not overtrading, and starting to become (just a little) more patient with the setups. Including today, I've had a mini-streak of 3 consecutive days of profits (see the performance webpage at the right sidebar). Monday's gains were attributed to Wi-Lan, as were much of Tuesday's gains. Today's gains are attributed to BIDU calls. I probably would have done even better if I didn't indulge in some (failed) scalps of SU on the TSX. Realistically speaking, I do expect this win streak to come to an end very soon, but at the same time, I feel more motivated now to prove that this is not a fluke.


Trader ZBS said...

Great performance to start December! Keep it rolling and you may not need a job any more.

Phileo said...

Hi zbs,

Thanks! I try not to think about trading for a living too much, it just adds to the pressure....

Simply Options Trader said...

You may want to lock in partial profits from BIDU since it has run up quite a few bucks, instead of holding full position overnight. Considering it is a volatile stock, I would prefer to have some hard cold cash on hand :) For your consideration in future. Good trade!