Trade – April 20, 2016
My month of low trading and more studying continues. I expect to trade most mornings but a big part of me stops everything, had me pay attention to what’s going on and then I watch how things play out throughout the day. In the past I’d make my moves then shut everything down. Win or lose. Now, I want to see how it all works out so I can learn more. I am still hoping to start ramping up my trading soon.
Today, I started with FCX.
I know Nate alerted this in the Investors Underground chat room. He shorted right away and then ditched it. He started in again over $12 but I was hesitant this early. My experience with FCX told me to wait for the 2nd move before trying anything. In the past I would get shaken out pretty early only to have things work out in the end. So, I waited. once I got the price confirming in the low teens I took my short at $12.11. My entry gave me some room to work with as it did go against me a little bit. Nothing that I wasn’t prepared for though. I got the slam I wanted and this thing came within a penny of hitting my order. It flirted around $11.95 for a while. I wanted to show some patience with this because of that whole dollar mark. I knew it might play around a little before dropping off. So, I moved a stop in to protect me just below my entry. Sure enough, this thing went up. I managed to walk away with 2 cents per share. I guess I could have played this safer and exited in those mid .90’s flirt areas. But, I wanted more out of this thing. It didn’t happen, but I managed this well to avoid getting beaten up over it.
Next up, CLF.
I missed this out of the gate so I decided to wait for round 2. I got a nice low to play off and then I pounced on a long at $4.64. This worked well for me and rose up nicely. I got up over 10 cents a share and then things suddenly dropped. This drop wasn’t a little blip. It felt bigger. I decided to kill this trade at scratch. After that, it rose back but never to my target area in the $4.80’s that I wanted. It dropped pretty strongly. So, I only lost my commissions on this one.
Like the other day, I’m not upset by losing like this. I had a plan. I waited for my plan to execute, and didn’t just blindly follow what someone was doing in the CHAT. When things went for me, I altered my stops to protect myself in case of a turn. It’s a great thing when you can be wrong about what is going to happen and end up green $3 on the day. Any losing day that ends green is the safe style of trading I like. I would rather miss some big opportunities than stare at my platform knowing I’m down 20-30-40 cents per share. I prefer to perfect these entries and focus on my trades that do exactly what I want them to. Hopefully tomorrow brings me something better.