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Tuesday, December 15, 2015

Why not keep trading already a winner symbol $C / updated

This is simple but may be very helpful information for novice traders. I learnt it the hard way during many years by losing my early morning gains after the first 1 hour of the open. After I took long on $C right from the open, I expected it to pull down and to build some more shares. However $C took off right from the gate in profits. I sold into the new daily highs, and re-bought just one more time for a very small gain again for 10c or so, not expecting too much of a further run,  unlike the FB long trade where I re-bought in expectation to run over 106.00 into new highs. The reason was pretty simple:

  • $C from the PDC  ( Previous Day Close) to the the HOD  today ( High Of Day ) had a range of about entire one  ATR !. Trading is playing the odds. When a big board stock trades on regular average daily volume like $C today , I do not expect any extraordinary big ranges to happen. The range ( the 1 ATR  $1.17) already was made in the first half hour from the open. I made few bucks, and I was done. Had the $C pulled back right from the open and allowed me to build bigger size , the gains could have been much nicer but you gotta take what market gives you and be thankful. 
Now, could $C go much higher today ? Of course it could.  I'm writing this during market hours when $C is trading at 52.20 so I dont know what may happen. But I don't want to take the chance to lose what I already made . The odds for $FB are much higher to keep running since still has room to fill out the ATR to the upside.


  •  $FB  ATR is $2.5 and so far it had made a range of only $1.00 since the open.

So I will keep calm , kill my ego , stay focused , and just watch FB. If gives me the expected I will take it 

To be updated after market close

Markets weakened after the first hour trading neither $C or $FB had continuation for long , locked in OK gains. Took $HD long of the 200 sma intraday and got stopped with acceptable loss that did not kill my green day.

Here are the trades :
                                                            The Green Day

                                                                        C

FB

HD the loser

The real bummer today was missing out on the $SWHC that I had it planned for great short opportunity twitted here 




Salute !
AngelDan@DaChopa




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