Not All Core

Just to prove that it’s not only about the core stocks when trading through the summer downturn, Friday produced a couple of winners that were most definitely not from the core list.

First up (though only by a matter of minutes), was this little beauty from NKTR:

All standard stuff, and over in a quarter of an hour, netting a four-figure profit in supposedly one of the quietest months of the year. Summer doldrums? What summer doldrums?

Next, YELP:

This trade lasted a third of the time of the previous one, and made about a third of the profit, which seems fair enough. About $500 in five minutes is not to be sniffed at.

Both of these trades were absolutely textbook — literally. Anyone who’s read the book will recognise the patterns and the reasons for entry and exit.

So there you have it. A ‘quiet’ Friday in a ‘quiet’ summer week, and a couple of trades that between them netted more than two thousand dollars profit in about fifteen minutes. Of course, it’s never quite that simple — there was some pre-market work involved in finding those trades. Not much, less than an hour, but it’s often overlooked. Still, my working day was done by half ten Eastern Time, just in time for Mrs W to drag me off for the next item on her summer agenda.

Tesla Ticking Over

While working in summer mode, I’m keeping things ticking over with the odd trade here and there when time, motivation, and Mrs W’s calendar permit. Sometimes that means a few trades in a week, sometimes it means none. Monday offered a chance to grab an hour in front of the screen, but no time for pre-market homework. So it was core stocks only. Fortunately Tesla came up with a nice quick winner, as it is prone to do most days:

Nothing groundbreaking or Earth-shattering or any other metaphor involving destruction. Just a regular pattern trade on a core stock. The exit was quick and at the first target and first sign of hesitation. It made a quick $720 profit, which keeps the old trading account ticking over and takes the pressure off for the rest of the week.

There’s Always Something

Summer or no summer, vacation or no vacation, whatever the day, whatever the weather, whenever the market is open, there’s always something to trade. Something, somewhere, is always making a nice simple, predictable, low-risk, high-probability, tradeable move. Sometimes that’s a core stock, sometimes it’s one from the daily watchlist.

Last time we looked at a core stock that was putting reliable dollars into the bank despite the start of the summer doldrums, so now let’s take a look at one that came off the daily watchlist.

I’ll be honest, I didn’t expect much from CSX at the start. It all went rather sideways, giving nothing away. But when it did go, it went far and fast, just how we like it. In under half an hour it generated nigh on two grand profit. The exit was clearly signaled by the momentum dropping away and a small bounce. All straightforward stuff.

That’s it for today. I’m in holiday mode, so fewer trading days and shorter blog posts are the order of the day!

So Begins The Summer

It’s that time of year when the activity in the markets begins to wane. When thoughts turn from double-tops to crop tops, from shorts to beach shorts, and from breakouts to summer breaks. Summer is here in the northern hemisphere, and traders everywhere are starting to take it easy. Including me. Which is why I haven’t posted any trades for a few days!

Continue reading “So Begins The Summer”

Late To The Party

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:

A chart of the NVDA stock.

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:

A chart of the LEN stock

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.