You’re A Wizard, ARRY

A couple of good’uns today. First up, ARRY:

A profitable day trade on ARRY

This was well signaled and worthy of the earlier entry. That meant there was enough profit in the pot to ride out the ending a little. Had I gone in later I probably would have exited around the $24 mark. As it is, this yielded $1,330 per thousand shares traded, making it by far the most profitable trade of the day.

The magic of margin means just $6000 in a trading account would be sufficient to have traded a thousand shares of ARRY. Math isn’t my strong point (as we know), but assuming such an account size, I make that a 22% return on investment — in one day. Well, one morning. Well, about half an hour, really. Spellbinding stuff.

Next up, AAPL, because we haven’t checked in with that stock for a while:

Day trading Apple stock

The entry here wasn’t quite so gob-smackingly obvious, so I was more conservative on the exit, getting out at the first target for $600. Holding longer would have got us over the $1000 mark, but hindsight is 20/20 and recklessness can cost us a lot more than missed opportunity. All in all, not a bad day at all.

DISHing Up The Profits

A couple of very nice trades to start the week. First up was DISH, which was just screaming out to be shorted.

A day trade on DISH earns $1030 profit.

It was only decent to oblige, and fifteen minutes later when things calmed down and momentum shifted, it was time to get out. $1,030 profit on that one. It wasn’t the most profitable trade of the day in pure profit terms, but it was the most profitable by another measure — more on that in a moment. The accolade of most profitable trade of the day in dollars gained went to Tesla (again).

A day trade on Tesla earns $1,110 profit.

This was right at the end of the morning so I nearly missed it. But with all that volatility around the important $200 price point, a trade was always going to be on the cards.

As I’ve mentioned, Tesla is a stock I’m learning the nuances of. Which is why I got out without hesitating at the point I did. That made for $1,110 in about six minutes or so (not that the timing matters).

Tesla continues then, to offer hefty rewards to the bold. It’s a high-priced stock, but we can always adjust our position size to something suitable to the price tag. Even cutting the size of this trade by ten would have yielded an easy hundred bucks for a few minutes in the trade. And of course, margin is there to help leverage these moves.

However, if we look at the profit gained for every dollar risked in the market, the DISH trade blew Tesla out of the water. For the same capital that was put on the line to trade 1,000 Tesla shares, it would have been possible to trade 6,000 Dish shares. That’s theoretical as the slippage on such size would have been something to take into account. Still, even if we assumed five times the size, that makes the Dish trade potentially worth more than five grand.

One of the great things about trading stocks is that ability to size up and down according to budget and risk. It’s easy to start small with tiny risk and work up to much larger sums as an account and experience grow. It means stocks are accessible to traders of any level of experience.

BIDU, Baby

A quick one to end the week’s trading. Here’s BIDU:

This trade was slightly unusual in that I traded into the EMA, which is something I generally avoid. But the EMA is only a yellow flag, not a red one. With plenty of other green flags around, I judged that the odds and probability were sufficiently in my favour.

As always, I was ready for a very fast exit. The advantage of these kinds of trades is that you know very soon after entering if it’s working out or not. If it starts going against me right away, I’m gone.

In this case, I was on the right side of the momentum and out as soon as that faltered around a logical exit.

Good Wholesome Fun

A couple of nice wholesome textbook trades today. The first one was not the largest winner of the day, despite producing a healthy $840 profit. Here’s the chart for FTCH:

A day trade on FTCH

The early drop was precipitous and a trader more on the ball than myself could well have taken the earlier entry to more than double their profit. I made do with the regular signal and took my profit at the first sign of trouble. 

There was lots around to trade (AAPL and ROKU doing it for the core stocks for example), but this one at the end of my morning was worthy of inclusion here:

A day trade on the AOS stock

Regular readers know I like to be done by midday, so taking a relatively late entry like this is less common for me. But hey, momentum was wild as the price dropped off a cliff. There was a high probability that it would all be over in a matter of minutes, and indeed it was all over in a matter of minutes. About ten. So that was a $100/minute trade right there, and still out in time for lunch.

There are excellent, easy trades to be had in every session when we trades stocks. Never a dull day.

Trade, 15th May 2019

It’s been a while since I posted a Facebook trade, so let’s rectify that situation:

Trade on FB

All standard stuff here, with a clean entry and an exit when momentum dried up. Another four-figure profit from a single trade. There’s a lot around at the moment, and core stocks like FB, TSLA, and ROKU are bringing home the bacon. But we must never become complacent — pre-market research is still the order of the day; we cannot rely on core stocks to provide the goods every day. 

More Tesla (Trade, 14th May 2019)

Here’s another Tesla trade, this time to the long side:

A long trade on Tesla stock for $1730 profit.

As with yesterday’s TSLA trade, I probably could have squeezed a bit more by getting out a tad earlier. Still, $1,730 profit isn’t bad, even if this time it took almost ten minutes to get there.

Before anyone asks, I didn’t enter earlier because the momentum wasn’t really there.

Four Figures In Five Minutes

Just one chart today, because it’s a lovely one:

 A four figure profit from a five minute trade on ROKU.

ROKU was up from the off, and presented at least three excellent setups. There was even more in the afternoon for anyone who trades that part of the session.

For me, it was the regular morning entry, and an exit at the first sign of trouble which coincided with a regular exit point. That put $1,150 profit in the pot. For anyone trading a strategy that holds longer, it wouldn’t have been that hard to bump that up to $2k.

As I say, there was a lot of sideways action after the initial morning flourish, then we headed north again.

A TRIP Through Some ‘dot-com’ Trades

A couple of nice trades on what we used to call ‘dot com’ stocks back in the day. You know, when the internet was the new hotness and you could buy anything with dot com in the name and make a killing. That all went pear shaped of course, then the real internet revolution came along. Now almost any stock could be considered a dot com if we go by the definition that they need a website to earn the label.

Today’s trades are proper internet plays though. Businesses who are based entirely online and who couldn’t have existed twenty years ago.

First up, every traveller’s friend, Trip Advisor:

Day trading the Trip Advisor stock

The stock took a trip south (sorry) from the open, and looked so weak and was subject to such selling pressure that the early entry was a no-brainer. Like a visitor to a bad hotel, I was out at the first sign of trouble. In the end there was more to be had, but I was gone with a four-figure profit in the bag and looking for the next trade.

The next trade happened to be dating giant Match:

Day trading match.com

This came along a bit later in the morning, but I’m glad I was still around to take it. After some faffing about earlier, traders clearly fell in love with the stock and started to pile in. We took a rapid ride up, and when the relationship started to look a little rocky I called an end to it and came out better off to the tune of $1,450.

Two simple trades netting almost two and a half grand between them. As always, there were plenty of other opportunities to be had.

Trades, Tuesday 7th May 2019

Here are a couple of trades from quite a busy day. First up MYL:

Day trade on MYL, 7th May 2019

All standard stuff, with a textbook entry and an exit at a logical place when the momentum dried up. The rapid descent in the price returned a $900 profit for about ten minutes in the trade. Those who hold longer than me could have taken more as the thing went further south, but each has to stick to their own rules. Mine are based on momentum, and whilst the chart can’t show the same granularity as the tape, those two big red volume bars followed by the little green one give a good idea what happened and why I got out when I did.

Next up, Facebook, because why not? It’s been a while since I posted a trade on FB.

The setup here wasn’t quite as clean as MYL, but it was clear enough, with a weak price getting squeezed. The trade, once entered, was over very quickly, lasting only about one five minute bar. As with MYL, momentum dried up, and we were already at an excellent exit, so there was no reason to hesitate on covering the position.

Anyone trading in the afternoon could have profited further from the additional drop after about 13:00, but personally I was long gone and sipping jippers on a beach (figuratively, you understand).