The two trades I’m posting today have some key commonalities. In both cases I came late to the trade. The reasons were slightly different each time. First up, let’s have a look at my old friend NVDA:
This was both an early entry and a late one at the same time. Anyone who follows my strategy knows that I have two common entry points in the morning. In the case of NVDA I took the earlier entry, but I took it late. That’s because I wanted to see what happened at the previous day’s high. There’s no point trading directly into a hard ceiling, that would be like walking into a set of automatic doors before they opened and hoping that they would part before we hit them. Better to make an approach, be ready, and wait for the way ahead to be clear. In the end, that level didn’t present a problem, so in I went and rode it until the first sign of the move faltering (coinciding with a target price). That came out at just over a thousand dollars profit for about fifteen minutes in the trade.
Here’s the next one:
This was obviously much later in the morning. I had the stock on my watchlist for reasons that, again, will be well known to followers of my strategy. But when the move came, it came very quickly and not while I was watching this particular stock. Missing moves is all part of the game — we cannot expect to catch every trade, we must accept that some will get away. Normally I would have let it go. However, the previous day’s range came into play here like with NVDA. As the price dropped through that significant level with some hefty momentum behind it, it was a clear signal that there was more to come. I jumped aboard and rode it down to a logical exit. That one proved more profitable, taking almost two thousand dollars in about fifteen minutes again.
Two trades, taken in opposite directions, both late, and both making use of the previous day’s range. It’s funny how sometimes there’s a kind of symmetry to the day.