Subscribe Feed (RSS)MEDX easing me back in the game
December 11th, 2007 by eyal | Filed under Day Trading. |
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Didn’t think I’d take any trades today, expecting a quiet session before the fed announcement. But there were a couple of opportunities that met my criteria. I went short MEDX which was OK but not great. Unlike most of the market it didn’t break down post fed rate cut. Still, it’s nice to be back after a while and have the first trade a winner instead of loser. The P&L is +1.1R.
So you were still in the trade during the FOMC annoucement? I’m always too worried about slippage from the ensuing volatility to trade on Fed days.
Rick - yeah I was in the trade but was able to reduce my risk by the announcement time.
You are braver than I. The fantasy trade of the day was buying SKF at 2 p.m. But the slippage would have been massive (I think) if the rate cut was 50 bps. I’ve been practicing sitting on my hands lately–it’s actually tougher than pulling the trigger. Welcome back by the way.
eyal… took the same trade. Any reason why you don’t post charts or your entries? I would be great to compare entries on similar trades. Welcome back.
Rick - yeah it’s tough not to “do something” and force a trade. After 2 weeks of not trading and half way through my vacation I was missing work.
oonr7 - I noticed on your blog. I check it out daily at 4 something :-) Charts - mainly because I’m too lazy to do that and partly because that would give away my top secret entry method ;-) Actually I just enter off typical dummy spots.
lol… maybe I need to charge for all the ’secrets’ I provide!! Note the very sarcastic tone in that last sentence.
oonr7 - yes, something like 44.99 per month or 1999.99 lifetime membership would do the trick :-)
I’m not sure what the difference is between a day trader and a swing trader…the goal is to buy low and sell high in a trade. I agree that options have their own approach, but I use candlestick charts with support/resistance analysis with upcoming or past recent events as a catalyst rather than trying to trade on news that may or may not move the stock consistently. The GRMN trade on Dec 2nd was a trade, but it opened on resistance and was bound to sell off.. It did for 5 days. The MEDX trade you talked about here you would have seen on the charts that the weekly 200mvg provided support and wasn’t likely to sell off a lot. It’s easy for me to analyze in hindsight your trade, but the short would perhaps would be longer term than one day when it gaps down so much and then to such powerful support. I guess you are right that there are many ways to skin a cat….but good charting analysis is something that I use to prevent me from entering a trade that’s only going to make me cents rather than dollars. Check out the daily chart on CME (qcharts is great) and look at the dollars up from there, and what the option did for me. :)
End of the month…50mvg…and a $24.00 to $37.00 gain on the 630 Calls. Very sweet. The option went to over $70 bucks, but I was happy with a piece. You should think about it. Knowing how the CME moves or any stock for that matter at certain times of the month or year or ahead of certain events (FED) makes getting into trades a lot less stressful, when you KNOW where it’s going to go. And you don’t have to treat it like a job once you have done the research. You can go out and do something else. Good trading!