Getting Back In The Saddle

That’s it, summer is over. Back to work! Okay, some of us never really went away. My blog posts may have thinned out to eventually disappear altogether over the holiday period, but I still traded at least one day each week, (the whims of Mrs W allowing).

Getting back to work after a long break is always hard. I still remember what it was like having the alarm clock going off the first morning after a vacation, and knowing I had to get up at silly o’clock to catch a train and go work for the man for the next God-only-knows how many weeks or months before another brief period of respite was bestowed upon me. So I know exactly how lucky I am now that I get to set the agenda, and I get to decide which days I work. Feel like a duvet day? No problem. Still, we all have to put in some hours sooner or later, otherwise the never-ending stream of bills coming through the mail starts turning red.

So to some trades. Easing myself back after the long weekend, I took the easy (some may say cowards’) option and just went for the old core list. Yes, it means I undoubtedly missed out on some stellar trades, and no I’m not going to go back and see what could have been. The day is done and I put some cash in the bank. More to the point, I followed the rules and traded accordingly, which is what really matters.

First up, old fave AAPL:

Apple have been all over the place these last few weeks, with new iPhone rumours, competitors launching phones, Disney officially announcing their streaming TV service and undercutting what Apple are expected to charge for theirs…the list goes on. They are a solid core stock and always worth checking in on. I admit I was lucky catching this move, because there wasn’t a lot going on with the chart up to then. Given the way the volume dried up within five minutes of entering, I took the exit at the first target. Yes, there was more on the table, but like I said, following the rules is the most important thing. Walking away with $800 in five minutes is better than hanging around to see what happens. Today it meant missing out on a bit extra, tomorrow it might mean handing it all back and then some.

Next up, QCOM:

This was far more clearly signaled, and the move when it came, was equally abrupt. However, in contrast to AAPL, the volume on QCOM increased after the initial move. That prompted me to stay in. Actually there wasn’t any more to come, and that told its own story. When the volume doubles and the price gets stuck, it’s a strong message. Time to walk away. So although this trade lasted three times as long as AAPL (fifteen minutes!), it only netted $30 more, taking $840 in all.

$1600 and change was good enough for one morning, especially given there was no watchlist. It was a gentle way back into trading ‘full time’ — by which I mean more than one morning a week.