RamtaJogi— Hacking Life for Money and Fame.

As I posted in my watch list, I was watching MELA and MRNA. I found them by watching pre-market action. Out of the two, I traded MELA.

With MELA, I waited 10 minutes before I placed the trade after market open. It turned out to be a great idea as MELA tanked for the first 10 minutes and then started moving up. I went long 1,000 shares at 5.95. After I entered the trade, I was watching the price action closely and saw that MELA had huge spread something like 10 to 15 cents. I hold on to MELA for a little bit as price kept jumping up and down from my entry price. I couldn’t stomach it for long and I got out at 6.00$ for 40$ profit after commissions.

Next, in the chatroom, I saw an alert from SIRI. I looked at the chart and I saw that SIRI was very jiggy. I went long 10,000 shares at 0.1030. After I entered the trade, I realized that I broke my rule of not trading a stock whose chart I haven’t studied. I got out at 0.1040 for 10$ profit which turned out to be 1.39$ loss after commissions.

As my two trades for the day were up, I couldn’t trade any more and I ended with 38.61$ profit for the day. Not a big amount but none the less it was good to end the day on GREEN after so many RED days.

Even though my two trades were up, I was still watching price action on MELA. After I exited, MELA continued to go up hitting HOD of 6.64. After MELA hit the HOD, based on the chart I called out that MELA will now fade and it faded PERFECTLY. I just wish MELA didn’t have the wide spread, I would have been able to wait out on my trade.

Few lessons I learned:

1. In my earlier post, I wrote that it may not be good idea to wait after market open. Today I would have been killed if I didn’t wait. I think just like all other things with trading, it depends whether you should wait after market open or not. Though after today’s trading experience and some of the other charts I have seen, it’s definitely a good idea to wait for 10 minutes after market open before you place the trade.

2. You need to have a lot of patience in the game called Trading. I was trying to short ARNA for last couple of days without any success, I was deciding that ARNA has run enough and it’s time to short. If I had been little more patient and watched ARNA from sidelines, I would have seen the breakdown today and made good money. IL called out ARNA breakdown perfectly in the chatroom on Friday.

Anyway, as I broke my rule on Friday, I am not going to trade tomorrow as a punishment. [If you are not a trader, you won't understand how not being allowed to trade is a punishment. ]

Trade well,
RJ

Status as of end of Feb 13th:

Positions closed for Gain: MELA (40$)

Positions closed for Loss: SIRI (-1.39$)

Open Positions: None