Closed Trades: BHI, HERO

I'm two days behind in my log.  I closed BHI.  This trade was very similar to my  GBX trade.  Great entry, great breakout and then a fade which I sold into.  I need to define exit parameters better.

Summary:
Long 70.73 May 29
Sold 72.89  + 2.16 2.96%

I could have stayed in as there was no reason to sell other than to protect my profits, which in itself is a reason to sell.  I think I would have done better to sell off a portion of the trade into the rally.

HERO:

Hero got slammed after revealing that it had forgone a contract in Angola and one of its rigs was out of operation, which is too bad because things had looked like they were turning around and a multi-week - month upside move would begin.  Anyway I went long after the carnage at 4.07 as it looked like HERO had bounced and was beginning a reversal move.  I thought a 10 % move or more to the upside in a day was likely.  It didn't happen the bounce got faded as the boarder markets sold off.  I kept my risk minimal selling at 3.95. for less than .5 R.  When trying to catch a falling knife, you can get cut just don't get stabbed.

This may be worth another look as multiple insiders were buying around 4 in an attempt to stop the drop.

SFUN Closed out, BHI opened

So got the big red bar today in SFUN and decided not to wait to find out what it means out at 12.58 near LOD, love those.  But hit the entry very well on the move at 11.23 (1.35 or  12% for a week hold).

Reasons for Selling: Relatively large move down. The stock overall is still in a downtrend so the chances of it reversing and continuing that trend are better than average.  

Time will tell if selling was the right decision here.  This could be the beginning of a extended uptrend or it could resume what it had been doing.  But as I refine my profit taking criteria I do know that I would rather close out for nice profit than a loss.

BHI: New buy

I've liked the look of a lot of oil related companies and BHI is one such company.  It has had over a month of consolidation in a very tight range.  Today, saw a bit of a bigger move and some additional volume.  This type of action often precedes a bigger move to the upside. I'm not a fan of chasing stocks or buying breakouts as I would rather be in before the action heats up.


  Stop at 68 or just over 1R.