Thursday, January 18, 2007

Daytrading Forsys Metals (FSY)

The charts never lie

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1. Why did I take this trade?
Because Forsys was breaking out of a mid-morning consolidation after huge volume buying in this morning's open.

2. What was the initial stop?
Iinitial stop was at 5.93. If the breakout failed, it would be pretty obvious.

3. Why did you exit where you did?
It first stalled for a bit after breaking above 6.10. After another surge, it stalled again near 6.20. I thought that was the end of the run when it stalled for the second time.

4. Is there anything you would do differently?
Forsys Metals (FSY on the TSX) got another surge of buying volume today. In retrospect, I should have been more focused and alert to that fact. I should have been more aggressive with the number of shares purchased, since there were plenty of buyers today to provide fuel for the run-up. It looks even better on the daily chart:

If there's any follow thru buying in the next couple of days, I will definitely jump back in, and probably hold longer.

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