I am loving SOLF!
Even though I did not enjoy all the gigantic moves it has made the past few sessions, the mere intraday volatility makes the stock very profitable!!
I must have traded SOLF over 10 times today (long and short) and still doing it right now. As of last tally I am up about $2,000 in the past 2 hours. Not bad at all!
Take advantage of these stocks when the volume is at its biggest. USE TECHNICAL ANALYSIS TO IDENTIFY BUY/SELL POINTS! This stock is money in the bank right now. Stay quick on your feet folks.
The key to successful day trading though is CONVICTION. Keep your losses small, and know when to lock profits.
Plan the trade, trade the plan.
- DL
Update 1
SOLF is VERY STRONG at its intraday 50DMA. But be careful about holding overnight positions. Tomorrow since it is the last day SOLF will trade before its earnings, the moves could be enormous both ways. It could tank because the stock has already made a huge move. Or it could rocket some more because investors are piling in and potentially causing more short covering. No matter what, STAY DISCIPLINED, and USE STOPS to trade.
Gotta be honest, I haven't had this much fun trading in a good while.
Update 2:
I am done trading SOLF for now. Long and short I count 22 orders executed today. I am not going to hold an overnight position. But tomorrow I am expecting the stock to have just as much volatility and swings. Stay sharp folks!
- DL
Disclosure
Long GOOG, V
Short USO
UPDATE 3:
SOLF JUST BROKE THE INTRADAY 50DMA. IF YOU ARE TRADING THIS STOCK, OR HAVE GONE LONG SINCE LAST WED. NOW IS THE TIME TO GET OUT AND LOCK PROFITS!!
If you are short, this could be tasty!!!
Update 4:
Wow PWRD down $4 bucks today to $27 - Pretty much spot on where I thought it would tank to! Congrats to you if you have been making the money on this trade. Tomorrow PWRD would probably sell off a little more because it closed right at the low of the day. But starting tomorrow, if I were you, I will start locking in profits. Whenever you get big moves like this, you have to stay discipline and do the right thing. Don't worry about losing out on more potential profits. You've made it already!
Markets had a VERY BIG reversal at the last hour. Watch for the potential downside that may come in the days ahead. For the DJI and S&P, they have once again tested the 200DMA and the sellers came in and dumped hand over fist.
Invest wisely - don't be the person to pick up wall street's unwanted shares. Save that for the Cramericans! BOOYAH!
14 comments:
Hey X,
Soon enough I hope I'll be able to do what you do, meaning some intraday trading...I'm still beginning and testing the water before I can jump :)
Would you mind explaining how you made it today, using what technique ?
Intraday is still a bit mysterious to me. Youre using the same technical indicators as with longer period ?
Thanks in advance for the knowledge,
M.
Xman- Wanted to drop you a line and say you are the man. I read your blog daily and have made some legit profits. You have helped me understand the power of technical trading and I much appreciated. Keep up the good work!
xman,
how did you learn your TA skillz? You must have read books or took classes.
I'm currently reading a William o'neil book (ibd founder), and its a very intersting read.
Hi X
What do you think about COST, SHW and AMGN? Something that is great about them is the amount of Puts exceeds by far the Calls.
AS
hey maiike,
I suggest if you want to take a shot at day trading first practice with a simulator portfolio. You will be able to really see first hand how a stock behaves and how strong/weak the stocks moving averages are. When I trade, I use 10 min intraday charts. I also keep in mind how far the stock has gone up or down before today. Then the next step would be to set in the 20,50,and 200 DMA. Those are very impt because when the price level hits those points alot of times they could reverse course.
Pay attention to the volume during each 10 min, watch where the indices are, and set tight stops to trade. For example, when I traded solf today, I had a 20 cents stop loss and a target to cover/sell at anything above 50 cents. (2 down, 5 up) . It is very impt to stick with discipline.
Also, level 2 streams are an absolute necessity to daytrade. They show exactly how many shares are being bought/sold every second. That gives you good idea of sentiment.
Good luck
wubritton,
Thanks for the comment I'm stoked you made money and beat the wall street goliaths. Drop by often and feel free to share your ideas as well. Good luck!
Hahighbaby,
I learned from a mentor (and a really close buddy of mine) how to recognize market opportunities. Reading books help a lot too bit honestly the best way to learn is to do it. If you have pro trading tools utilize the simulators to get acquainted with the stock price movement and its reaction when it hits key levels. Real experience trumps reading books IMO. Books however will teach us how to interpret the technical signals, which is impt. But believe me when I say sometimes your own intuition will even surpass what they teach in books bit I'll def have to check out the book you're reading. Thx for the heads up
Annoymous,
Thanks for the heads up play. I will have to look at their charts when I get home. How are you setting up for these plays?
maiike ,
One more thing I will add though is as a rule, most brokerages will only allow daytrading if 1) you have marginal account. And 2. Have a minimum of $25,000 equity. You cannot short stocks if you do not have a marginal Account. And also it will take your trades 3 days to clear if you don't have.
The amount of shares you can buy also plays a big role in profitability. Simply put, the more shares you can buy, the stock could move by just 50-60 cents and it'll already equate to a nice profit. To give you another example, when I day trade solf I trade in 500 shares block. The longest gold I had today in solf was about 20 mins and I made close to 1 dollar. That is 500 bucks (before transaction cost and taxes but I'll worry bout that when its time). The shortest hold I did today was 3 mins for 50 cents gain. The point is the more shares you have, the quicker you can profit without having to expose yourself for a long period in a position especially in volatile ones. But just have to remember the flip side to it. If the trade works against you, you will lose just as fast. This is why its impt to have discipline and utilize charts, price, volume, and time and bend the odds toward your favor as much as possible.
Hey,
Something that also is very interesting in day trading is the options strike prices. Stocks usually tend to do not surpass those limits (check for example intraday for SHW-$60 and AMGN-$42.50)
:-)
X, I read your posts on USO and felt you should know something. I'm not sure about your level of experience with ETFs, so I may be rehashing an old point, but if I'm not it's a lesson learned. With USO (or any ETF) you can't necessarily use TA like you would a traditional equity because depending on the type it responds to outside factors. Example, I have a position in FXP (ultrashort China etf) and while the MACD signaled a strong buy, the ETF kept declining due to the Dow gaining and some strength in China's markets. Meaning you can use them as a guide but don't rely on them for this instance. I could be wrong though, I'm not a commodities trader and have no knowledge of them or Oil to say how it works. I'm sure if it's charted Oil could be overbought but since its a commodity as long as there is supply and demand (or speculators) I believe it will continue to go up, I personally wouldn't bet against commodities but I wouldn't buy them either.
Sorry if it's a bit of a long post.
Mr. Jeanius,
Thanks for your insight. I have actually thought about this play for a while. The reason why I am holding on to it for the time being is simply because I feel that oil prices will pull back in the near future in order for the sector to regain strength for the next move up. I have to agree with you sometimes using TA to analyze ETF's are not proper indicators because it reflects the performance of a basket of stocks over one particular stock.
I have seen the FXP Etf and I have to agree with you there. I remembered when it was at $100 and everyone thought it was a sure bet that things would continue to get worst. Now the ETF has tanked nearly 40%. Very brutal indeed.
I will continue to evaluate this play. I am only down about 2.8% so its not too bad since I have a relatively small position in it. But I will definitely give it some thought. Thanks for your insight!
Annoymous,
Responding to your request about COST, SHW, and AMGN
Costco has pulled back right to its 20DMA which has proven to be very strong support throughout the past few months. If it holds we should see bids coming in for costco soon.
http://stockcharts.com/h-sc/ui?s=COST&p=D&b=5&g=0&id=p95859275062
Sherwin Williams recently broke through its 200DMA and is now consolidating right on top of it. Very bullish action from a TA perspective.
http://stockcharts.com/h-sc/ui?s=SHW&p=D&b=5&g=0&id=p95859275062
And finally, Amgen is currently pinned below the 20 and 50DMA and is failing to break through. This is bearish action. The stock could sell off some more in the coming days.
http://stockcharts.com/h-sc/ui?s=amgn&p=D&b=5&g=0&id=p95859275062
Good luck with the picks!
Hey X,
Thanks a lot for the new post, great insight.
I'll open up an account (a different one than the one with my bank :) and test the live tools with a virtual portfolio as suggested.
Again your blog is a gem
M.
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