I missed the open today; and because of that, I missed a trade that turned out to be have the cleanest entry and exit as well as the greatest return (risk/reward ratio) from my watch list:
I didn't take the trade on the short side when I got in. The stock had dropped $1.53 from the entry I would've taken. I didn't think there was anything left in the move so I left it alone... I went back and forth on that one. The stock did set up one more time, but I refused to take it; heck the stock was consolidating when I got in the office, but I didn't want to be wrong. Since there wasn't a clear reason to enter, I left it and took another trade off of my watch list.
I took a trade in Mankind Corp. I anticipated that the stock would go green at the open then reverse. the stock. The stock closed up (with huge range ) yesterday but not by much. there was clearly uncertainty between buyers and sellers in the stock. Throw in the fact that the stock gapped down yesterday, I felt that the stock would definitely continue the downtrend.
Mankind (MNKD) gapped down today; I was able to take a position in the stock at 6.03 and 6.04. the stock didnt move the way I expected to. It went to 5.98 a few times but thats it. I covered at 6.04. It did move back down but it never moved the way I expected to... I anticipated a move to 5.75-5.60. The slow chop is not the trade you want to be in; moving up and down a range (a three cent range) is not the type of trading I wanted to do on this stock. Here is the trade:
Will get in earlier to be properly prepared to take advantage of early moves in the market. in other news, below is the 4 pm (ish) update of my forex trading...
By the way, the profit looks nice. I didn't use much cash on those positions. That is one of the advantages of forex trading. You can open a position with only a fraction of the principal. If the trade works in your favor, then your gains (depending on the side of the trade taken) can be infinite. If you are wrong though, it may cost you everything you have and more!
Anyway, I have to head out. Good luck tomorrow and green trading!!