Thursday, June 16, 2011

$CRIC and $YOKU daytrade review

Just want to go over two trades I made today $CRIC and $YOKU. The gains weren't that glamorous but it was a profitable day after all. Some of you might wonder why I did not go over $JVA or $QIHU those two swing trades that I took last week which netted me $10,000+ (or some of you might wonder when am I going to stop talking about it). Well, the reason I would like to review these two trades that I took today because day-trading requires more skills than swing-trading. It requires undivided attention and instant decision making. Any slightest hesitation while day trading could easily turn your profits into losses (sometimes massive losses) in a matter of minutes or sometime seconds.

I woke up at 10:00am after a drunk ass night and came across with $CRIC, a stock that got destroyed by the market since the beginning of June and it have since bounced off it's $4.50 lows. Below is the intraday chart.

 The stock was tabbing yesterday's highs at $3.37 on volume. So I enter my position at 3.37(bought 3k shares) and got a bad fill at 3.39. Then as expected the stock spiked on volume to $5.49(which if I took profit, I would netted $300 within five minutes from my original entry) Unfortunately, the stock quickly faded from it's $5.49 highs (that should be your first warning sign that the breakout trade might fail) I waited another five minutes and the stock indeed began to trade lower which I eventually sold at 3.34, a total of $150.00 loss on the trade.

After failing to make money with my half awake/drunken shit face. I decided to take a five minutes break and brush my yellow ass teeth. Then I came across another opportunity which was $YOKU, an Internet stock that initially gapped up in the morning and it has been fading all day (A warning sign this stock is not showing strength).


The stock broke below $28 intraday support I immediately enter a short position at 27.77 (2000 shares, yes I chased it) Now, I was fully aware that this stock could quickly reverse and I might inherent another round of losses.(Which I talked about Accepting Your Risk back in Jan 2011) Guess what? The stock did begin to reverse and I am here staring at the chart watching the trade failing and my account size diminishing -$50, - $100, - $200, then eventually the stock reversed back all the way to $28.00 (which was the intraday support and now resistance). At this point, I was down $450 on the trade but then I gave it another five minutes to see if it can break back above it's intra-day support. If it did, I would cover my position some where around $28.10 and eat another round of massive losses then call it the day; However, my patience paid off. The stock quickly sold off from it's intarday $28 resistance and begin to trade lower. The trade turned positive and I begin to cover with my 1/3,1/3,1/3 strategy 27.39 (covered 600 shares), 27.29(covered 600 shares) then 27.17(covered rest of 800 shares); and that end up netted me a $1,000 profit on the trade.


The stock did eventually bottom at $26, which if I held my last 1/3 position and let it ride I would have made another $900. Too bad. =(

1 comment:

The Average Jay said...

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