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Of the stocks scanned yesterday looking for a sudden turn; 43 of the 51 finished higher today. This is way better than I expected.
PKG was almost a textbook performance. You could have jumped in at the open or waited for a pullback.
Today’s scan produced 10 hits most of which were banks.
I like FRC, BKU and WBS out of the 10. If you are able to see the open; you can take an entry at or below today’s high with a tight stop for what might be a quick move.
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
Of the 10 that were found Thursday 6 finished higher.
FRC: Never gave an entry. It opened and moved down immediately and never got back to the open.
BKU: Got away off the open. Couldn’t find an entry off the 5 minute chart.
WBS: Gave me an entry @ 28.64 and I trailed a stop and got stopped out @ 28.62 for a more or less breakeven trade. I wish all my losses were that small. I was prepared to re-enter if got a signal but that didn’t happen.
The "quick turn around" type of trade can go either way. I monitor them quite closely and don’t hesitate to take losses, or profits for that matter, quite quickly. The trades that work take off and never look back. The ones that don’t aren’t working the way I expected so I bail.
Trader should be very definite as to what they expect the price to do. If it doesn’t do what you expect then get out. If it’s a fake out you can always get back in.
Today there were no hits on the scan.
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
The ST “sudden turn” scan has just one hit today.
TRN: What I like here is that after a huge down day TRN opened near the old swing low; climbed up quickly then traded in a narrow range near the high for the rest of the day. (see 5 min chart)
I will take a position near the days high. 34.70 area depending on the price action.
A gap up will cause me to place a bid at 34.70.
An open below 34.70 will cause me to place a stop limit order 34.70 /34.75
Both these orders will have a bracket order attached. With a stop at 33.75
Opening below 34.70 then trading below the stop will nullify the trade.
A target just below the last swing high of 37.42 will give a R:R of 1:2.5
Another almost sudden turn stock that caught my eye was ARMH.
For whatever reason it sold off heavily this morning then retraced and traded in a narrow range into the close. The heavy volume suggests that every one who wanted to sell has done so.
I will look at the same entry method as with TRN.
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
My objective whether trading or investing is to employ my capital as efficiently as I possibly can to earn a return.
At the end of the day my account balance represents the amount of capital I have working for me.
That capital can be broken down into the positions I hold and whatever cash I have available to put to work.
It doesn’t matter whether the positions I hold are higher or lower than where I purchased them. The account balance is all the capital I have at that point in time.
If I close any position in the account I will have the same dollar amount of capital less whatever commission I have to pay. It makes no difference to that dollar amount if I realize a loss or a gain on the sale.
The only difference it makes is to me. In my mind there is satisfaction in taking a profit and disappointment and regret in taking a loss.
And being human I gravitate towards pleasure and do my utmost to avoid pain. The problem is that this causes me to lose sight of my objective to employ my capital as efficiently as I possibly can to earn a return.
Here are some of the rationalizations I have made for not taking losses.
“It’s not a real loss until I sell.”
“The market always comes back”
“I’ll wait for a bounce and take a smaller loss.”
“The fundamentals are great.”
“I’m in the market for the long term.”
And I’m sure there are a lot more.
Now I look at each position I hold and ask myself:
“Will I get the best return on my capital by holding this position?”
“If I didn’t hold this position would I buy it today?”
“If I closed this position is there a better place to put my capital at this time?”
“Am I better off in cash?”
What I paid for the position is not a factor. It doesn’t matter. What matters is my objective of getting the best return for the capital I have at this point in time.
As a trader/investor the only control you have on how the market treats you is with the decisions you make.
The decision to hold a position is the same as the decision to buy that position.
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
2 stock showed up in the ST Scan this evening.
ANN & PODD
I’ll watch the open in the morning and see where the stocks might want to go.
ANN:
I’ll give ANN an initial target of 40 just below the last swing high.
Entry would be 38 or less with a stop in the 37 area.
A lot will depend on price action during the open.
I look for a support area to place my stop and hopefully get a decent R:R ratio.
If the price gaps up I will wait for a gap fill.
If the price opens below the 37 area and shows signs of going up I will take a position with a tight stop just under the LOD.(Daily Low)
If price opens near today’s close I will take a position if it breaks 38 or if it makes a new swing high after testing the LOD.
I will risk 0.5% of my capital; position size will depend on the stop placement.
PODD
Initial target is 47.50. (measured move; last couple of swings were in the $8 range so 39.50 plus 8 gives me 47.50)
Same situation as above.
The same type of “If / Then” scenarios that will depend on the price action.
Entry will probably be in the 43 area giving a $4.5o reward so stop can be &1.50 away for a 1:3 R:R
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
Year to date the account has a realized gain of just under 15%.
You can take that with a gain of salt because I haven't posted all of my trades this year and you shouldn't believe anonymous posters on trading forums.
"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
