I had been watching this for the 3.5 cent break for a while. Today, it gapped above 3.5 cents and opened at 3.6 cents. I got in for 150,000 shares at 3.7 cents. I almost got shook out on a brief dip back to 3.6 cents but it came back up. It went as high as 3.89 cents, only to fade over the afternoon and close at 3.73 cents.
There are some good and bad things about this play. The good things are:
1. It's a breakout to a 52-week high
2. The white candle is piercing the upper bollinger band with a RSI(2) of more than 90.
3. The MACD is crossing over
The bad thing is the volume. Volume was good early in the morning but was weak the rest of the day. Today's overall volume barely exceeded Friday's. So, I don't know if this breakout will hold through tomorrow. I'd love for this to touch 4 cents where I'd exit but I'm not sure it's going to do that. Right now I'm hoping to just break even on the trade in the morning...I paid a $50 commission to get in and I'll pay the same to get out. Since I'm $45 up on my position, I need a small morning spike to break even or take a small profit.
Unfortunately, since I was tied up in this play and because of my limited day-trades, I missed out on some great plays today, like UVSE, or shorting Wamu. There will always be more plays in the future, though.
One good thing is, though, is that I did not use up a day-trade on this one.
So, for now, my account is pretty much the same as it was on Friday. See you in the gutter tomorrow.
Positions being held overnight: GSPG
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2 comments:
Hey, just curious if you ever looked specifically at how much you've made from UVSE? Seems like most of your gains were from that one stock, so I'm wondering how you're feeling about your trading in general, and if you think you've learned a lot. I'm still learning every day and have been doing this pretty much for 2.5 years non-stop. It's a lot harder than you'd think it would be, isn't it? Good luck to you, hope you succeed.
UVSE has definitely been my biggest winner. I've had nice gains from others (not as big as UVSE though), but those gains have been canceled out from mistakes on other plays.
Like you, I feel that I'm learning every day. Trading is VERY hard, and anybody who thinks it's easy is kidding themselves.
My biggest goal is to minimize my "bad" trades. I don't mind losing a little bit on a trade, as long as I had solid reasons for entering the trade and a solid exit strategy. GSPG is one of those. It certainly was not a mistake to get into the trade. We'll see how it comes out tomorrow.
The pattern-day trader rule certainly doesn't help. It makes it more difficult for a small account holder to be successful.
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