Sunday, March 22, 2015

March 20 Trades:

Over the past week, I'be been trying out some a RSI filters for my momentum trades.  Since I was in the experimental phase for my setups, I wanted to take a lot of trades to provide feed back as to what was working and what was not.  For that reason, I also cut my position size to at least a 1/3 of my normal size.   The feedback I gained from this little test has convinced me in the merit of this approach. 

After an encouraging breakout on Thursday, Friday saw a gap up and rejection.  After seeing this would gap up, I strongly suspected that this would not move higher so I moved my stop up to Slightly below the close on Thursday.   That stop was hit. All things considered .53 Gain +3.8% on a failed breakout is not bad.

Opened: 13.80
Closed: 14.33

AXN:This one looked promising on a weekly Time frame but that move failed and I got stopped out.
his was a trade to attempt to zero in on the interplay between my time frames.  Had I taken the daily move, I likely would have closed this out for a small profit as it had run to a high of $2.29 or nearly 15% from my buy point.   I Should have sold the gap on a daily.  Did I mention I hate continuation gaps in my favor?   They almost always put in a ceiling for a stock .

Entry: 1.99
Exit: 1.76.

ARQL: I closed this one as I realized that it did not fit my time frame.  Simply having monthly  and weekly power did not coincide with a good daily setup. After realizing I was in "no man's land" I realized there was no reason for me to be in this position so I closed it.

Entry: $2.22
Exit:  $2.35  +.13  +5.9%

I got stopped out as CRMD finally gave way to the 10 Day EMA.

Entry: 7.97
Exit: 7.71

This one deserves some extra discussion as I made a mistake in  mixing my time frames.  I used the daily entry and executed the entry very well. 7.97 within 2 days CRMD had traded up to 8.90.  But rather than take the gains, I was counting on the weekly/monthly strength to push this one higher.   As shown in the second chart the weekly breakout was not ready.  Thus, I should have used daily signals for an exit.

Although CRMD has shown tremendous weekly power, which allowed the pull back entry to work at support this was not ready to breakout.   This was only week 2.  For a Weekly fishhook to work its 1-2-3- GO!.   Since the weekly was not ready, the exit should have been determined on a daily chart.   
Although I took a loss on this trade, it was an "experiment trade" so the loss was small.   I think the lesson that I learned here  will be well worth it. 

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