Wednesday, February 10, 2010

A whole lot of nothing

Well, after a full day's of trading, we pretty much went nowhere. If you are bullish, then it must be encouraging for you to see the market pretty much hold on to most of yesterday's gains. And if you are bearish, it must be encouraging for you to see the bears still hold on to 1072, the immediate resistance level I had pointed out two days ago. The more the bulls try and fail at this level, the more important this level becomes.

Personally speaking, I got out of LCC in the first few seconds of the trading day at 6.39. I am pretty pleased with the way I have traded this stock for the past three days. It turned out to be a smart move as the stock made a low of 6.21, and I would have been stepped out of it had I held on to it. That's how I trade...if I feel the stock is going lower, I sell it before my stop point. Do I get burned by this sometimes? Sure.....when the stock moves higher without reaching my stop point. But my logic is....if I am confident the stock is going down, why hold on to it? Its a personal choice that depends on an individual's trading style. The goal of all trading and trading styles is to maximize the reward/risk ratio. You might do so by maximizing your rewards or minimizing your risk. I adopt the latter. That's why I try to take my profits early and losses "earlier".

I still liked the action in airline stocks, so entered UAUA at 15.01. This stock was in the watchlist I had posted last night. It is a smaller position than I would have liked but I dont have any day trades left till Friday....oh well. It acted better than I had expected making a high of 15.76, before closing at 15.36. Like I said, I didnt have any day trades left, so there was nothing I could do as my profits in it, make that potential profits in it, headed south. Still, no complaints. I knew this was always a possibility before I got into it.

Hope all you readers had a good day out there too. I will be back later tonight with some charts worth keeping an eye on.

Take care and stay warm!

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