Trade – April 20, 2016

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.

fcx-april20-2016

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.

clf-april20-2016

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.

trade-april20-2016

 

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