Brains vs Patience © The Rocketeer
What an amazing day for US Stock Market. DOW was up by 900 points and so were lot of financial stocks. When I spoke to Lighter on Sunday, he very precisely described the rally we saw today.
Unfortunately, there was nothing much for me to gain in this rally. ABK gap opened at 2.31 but quickly lost the gains and closed at 1.89 for the day, lousy 11% up day on day.
For a potential trade, I was watching NCC. NCC is a very nice day ranger which has good support at 2$ and it moves up from there to come back down again. Just like ABK, it opened with a huge gap but closed it in half an hour. I had my order setup to enter at 2.01 but it never reached that level and I decided not to chase the stock. It was a good move because NCC didn’t move much during the day closing at 2.30. I have decided that I will not enter a trade UNLESS I am 100% certain about my analysis of the chart and my entry/exit price.
What’s next?
After suffering the losses, I have been thinking about how can I turn things around and this weekend, I thought that I should subscribe to Tim Alerts. Why? Because, his openness has made me trust him. As he says, he is not in to bullshitting business. Also, his service is really cheap at 30$/month. If I can make only one successful trade worth 30$, I have covered my cost of subscription. Any additional profit is icing on the cake.
What’s in for tomorrow?
JV’s 4 day breakout filter returned following stocks.
DYN, SANM, PPC, SBH, IMMR, AVR, TSON.
I am ignoring TSON because the volume is below 100k.
IMMR is very interesting because every time stock moved up 4 days in a row in past, it came down on the fifth day. Not only that, it kept coming down for next couple of days. I will be keeping very close eye on this tomorrow.
DYN gained almost 100% in last 4 trading days. If it goes red tomorrow, I might short it. Also, TOS shows it as ‘Easy To Borrow’. 
I am going to ignore SANM, PPC, SBH, AVR for now.
I will give you an update tomorrow about these watches.
Till then, happy trading!
RJ.
4 responses so far ↓
1 matty84 // Oct 14, 2008 at 10:02 pm
Ramta, I just caught up on your entries since I’ve been consumed by cover letters as of late haha, which has, sadly, taken time from learning (by doing) more about trading. Just been lurking in GOTS and alerting on occasion if I happen to see something while I’m at the computer.
I have to admit I think you could very well be right about ABK, I know I wouldn’t have the balls to hold, but it’s true it’d be hard pressed to stay at its levels forever…aight keep up what you’re doing!
2 matty84 // Oct 14, 2008 at 10:08 pm
P.S. just saw what small amounts you’re trading with, makes me feel sooo much better…I thought maybe you had $2000 in CSK or something, but it was $46! whew.
3 RJ // Oct 14, 2008 at 10:57 pm
Thanks Matty. I guess finding a job is definitely the first priority. And stock market isn’t going anywhere!
And I don’t know whether I am right or wrong about ABK. But it is one of the biggest re-insurer and considering the fact that banks are able to sell of their toxic mortgages to Treasury, ABK might not have to pay the claims. I don’t know if I will be able to turn up profit, but at least I would be able to cover my initial investment.
And yes, I have decided to trade small amount till I am bit better at this game.
I appreciate your inputs and good luck with your job search!
4 Missing the perfect setup. - RamtaJogi // Oct 14, 2008 at 11:55 pm
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