Had a great weekend, I hope everyone did too. I went camping for the entire weekend so I didn't get a chance to do homework on new stocks. Have some catch up work to do.
Markets are trading flat right now after the morning's rally fizzled. I think we can reasonably expect the indices to have a day or two of pauses. Last week it went down too fast without any sort of bounces.
PWRD is a winner now once again. Congrats if you bought in on the call (or if you had a fill order @ 24 because that was exactly where it opened).
If you still have it, theres a choice to be made right now (since it is up 5%).
If you believe the markets will eventually take a hit again, and therefore pulling PWRD potentially even lower, then hey, a 5% gain in one session isn't that bad. Or, you can wait for PWRD to rebound to its 200DMA and 50DMA @ $26. Which at that point would be heavy resistance and thus result in another round of selloff.
If you believe even throughout the market turmoil PWRD will eventually retrace back to 30+, then just hold on to it. And maybe set a stop at $22.
I am going to hold on to it for now. I will see what happens when the stock hits $26. PWRD historically breaks resistance very easily. Meaning support usually isn't support, and resistance isn't so either...let's see what happens.
SOLF in my humble opinion is currently one of the best day trading stocks around. The swings are so great yet the market cap of the company is small enough that if you trade anything above 1000 shares you can actually see your buy and sells moving the stock!! It's pretty fascinating. I have been day trading SOLF for a week now and have made a killing doing so. I am going to continue to do it until the trade is broken and the volatility dies out.
Someone also asked me about what I'm going to do with my USO short. My stop loss on it is at $110. If it goes anywhere below triple digits (below 100) then I'll probably cover. I still believe that oil needs to have a very big pullback. But I've had the trade for nearly two weeks now. I feel my money could be put to better use elsewhere.
Let's see what happens later today.
-DL
Disclosure
Long GOOG, 75% V, 70% PWRD
Short USO
Actively Day Trading SOLF
8 comments:
solf is def a wet dream for day traders hahah
With PWRD being so unpredictable, are you planning on adding to your position?.
On trading SOLF. Do you simply just follow the trend, when buying or going short? (eg. if it reverse a trend and moves up, do you buy? or do you just look at the bid/ask volume). SOLF seems to have light volume today, so I can't for the life of me figure out how exactly its trends are predictable.
I'm not going to add anymore to my PWRD position since it already started going up. I was going to add to it only if it dipped today. I have good amount of exposure to it, so I am content.
As for trading SOLF, yes, I go long and sell short depending on the trend. I execute buy and sell points depending when the intraday shows extreme overbought/oversold status. I just broke even today trading SOLF. Was up nicely this morning then I did some stupid trades and didn't stick with the discipline so my gains got wiped. Oh well, live and learn. But I do not hold overnight positions on it.
Whether it is light volume or not is irreverent on a day trading scheme of things as long as you're on the right side of the trade. Having light volume sometimes is great too because you can utilize it to move stocks. I trade now on blocks of 2000 shares and everytime I execute an order I see the stock move. It is pretty neat. Sometimes I will hold on to the position for an hr, other times I will let it go within minutes. The point is to minimize losses and to utilize large orders to scalp small moves. Because even 10-20 cents moves is already enough to make or break a trade.
I don't know about the rest of your readers, but I'm definetly not trading in the thousands of shares :)
Being as that is, would smaller players like me be smarter to watch volume and play when there's validation of institutional movements? That seems to be the IBD method for small timers...
monkies.
I value XMans tech. Anz. of the market, his picks and read him daily. Im like you though, and trading in much smaller amounts.
monkies,
I should be more clear and say yes, watching volume is very important to day trading. Please do not let me misguide you by wrong choices of words :)
But in my opinion, in addition to watching volume, watching how the intraday stock pattern is very important. When watching intraday 10 minute charts, watching the candle movement and how it closes is even MORE important. It provides clear picture as to how the stock may react in the next 10 minutes.
It is hard to describe with text, ok I will make another post to try and explain how my method works. Stay tuned.
No definitely not misguiding at all! I was just curious about how people play the market and what they watch. Like bassman, I watch this blog every day because it's like a little lesson for free!
I may have beat you to the punch, but I found this site helpful for looking at chart patterns too...
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_cand
monkies,
yes, that is a very good resource. I spent quite a bit of time studying those patterns before I started day trading. Understanding it is what allows us to gain the maximum edge in trading.
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