Day Trading Post #4

Monday was a very uneventful day. If you look at the daily chart for the S&P 500, there were no real big moves, and the candlestick for the day formed a doji. Why? My educated guess would be that President Obama’s economic stimulus plan was delayed, hence many people wanted to stay out of the market… There was very light volume and as a result, I only took 2 trades the entire day for a gross profit of $0.03, LOL! Yea, I really shouldn’t have taken a trade looking back at it, but the 2 trades I took were in the AM within the first 2 hours of the market opening, so I didn’t know how the day would really play out.

Anyway, to get the point of this post for 2.6.09, my trades were as follows: I took TXT at 9:45am when it broke the high of the previous 15 minute candlestick. Then it shook around a bit and from what I recall, the stochastics began to reverse on me so I took profits when I was up $0.05. Not really worth the trade. Then I took the trade again at 3:11pm long when the stochastics were bullish and got out at 3:44 at a price of $7.27 for a loss of 2 cents.

Unfortunately I don’t have the charts, but the nice thing is that from what I remember, the indicators were all set up in my favor, and with both trades, I was up at least 5 cents or more at some point in time. The only issue is I held on a bit too long and ended up taking a small hit at the end of the day because the market was closing and began to fall hard. So instead of holding and hoping for TXT to jump back up to my entry price, I limited out for a tiny loss.


Tuesday was a bit more positive, and yes, I do have a chart for this trade! Profits were again minimal but still I did make profits… $0.14 total. Now I really don’t like to trade of the 1 minute chart, but for this trade, I did because when I was scrolling through the charts, IYR looked pretty smooth on the minute chart. Anyway, I have a screenshot below, but stochastics along with IYR breaking the $30.20 base it had formed a few minutes earlier gave me an entry. Then to confirm the entry, the 3, 5, 15 and 60 minute charts all gave the long signal because it looked as if the had either just began to reverse or bottomed out. The trade was a scalp, but profitable. Screenshot below: