Tuesday, April 10, 2012

Tough Week So Far

It's only Tuesday and the market down-turn has stopped me out of four short-term positions (CBAK, ARNA, SCLN, CRIS). It never feels good to be on a loosing streak, but it happens to the best of traders.  The takeaway for me is that I need to keep an eye on the bigger picture and understand where the market is heading before entering the trades.  I use the 13 ema to gauge the trend of the market.  If the market is trending above it, I can be more aggressive with my position sizes, entries and exits.  If the market is trending below, I need to take smaller positions, keep stops tighter and profit targets smaller.

I expect the market to chop along for a few weeks, making trading challenging...and earnings season may not help. Patience will be key. Make sure to only take the best setups. 

DNKN - I nearly stopped out of my position in DNKN.  It held the 50 day ma into the close, but I'll be keeping a close eye on it.

SGMNF - This stock held its breakout after moving from 20 to 50 cents.  The volume has been relatively low, but the price has started moving up again, which a close at around 35 cents today.  There may be some resistance here, but with some increased volume, we might make another run at 50 cents or higher.

SNPK - This is a pump n dump stock that I got into at around 57 cents after I got an email promoting it.  There has been a lot of news released by the company and the price has increased over the course of the last month.  I sold yesterday for $1.20 or over 100%.  Please note, that I had a very small position with this stock and consider this gain more luck than skill. I typically won't play any pump and dump stocks, but I thought that I got in early enough to make some profit on it.  Anyway, it worked out for me.

~JP

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