First of all, the stock talked below it is not a penny stock, it has 2.4 million shares traded today. I have zero positions on this stock, I don't suggest anyone to buy this stock. I only want to discuss the trading strategy, not the stock pe se. Here is a stock a friend asked me today. He bought the stock at $2 right at the open, when he asked me where the bottom is, it was dropped to $1.80. I looked at the daily/weekly support, I told him $1.56 is the bottom. I also showed him different charts to confirm it (unforntately, Ensign is rolling over my new charts over the old charts, I can only show a few of them). Around 10:50 AM, dropped to 1.50s and right at the daily/weekly support, a buy: Bouncing off the support, he asked me if $2 is the resistence, I told him according to the chart, the resistence is at $2.24: The stock closed at $2.10 and he sold above breakeven, my charts saved his xxx. Clearly, $1.50 is still the support on the weekly chart: [10:43] <domino> tim take a look at PCSV, strictly technicals [10:43] <domino> does she bounce? [10:44] <Timothy> sure [10:44] <Timothy> let me plug it [10:48] <Timothy> Fred, the volume on it is way down [10:48] <Timothy> on weekly chart, support is at 1.5 [10:48] <Timothy> on daily chart, support is at 1.56 [10:48] <Timothy> http://charts.dacharts.com/2007-04-25/smallcaptrading_09.png [10:48] <Timothy> http://charts.dacharts.com/2007-04-25/smallcaptrading_10.png [10:48] <Timothy> double click the chart [10:49] <Timothy> The BUY/SELL signals are crystal clear here: [10:49] <Timothy> http://charts.dacharts.com/2007-04-25/smallcaptrading_11.png [10:51] <domino> are you sure about the volume being way down? it's still pretty impressive volume for a BB ............ [12:24] <domino> started at 2.56 yesterday [12:25] <domino> started w/ 4500 @ 2 at the open, cheapest buy was 2k @ 1.545 today [12:26] <domino> still holding 9500, I've sold 7500 and it's booking me $612.50 profits [12:26] <domino> but my cost avg just increased dramatically [12:28] <domino> tim, what does your chart say is the peak on the bounce [12:28] <Timothy> PCSV bounced right off the support [12:28] <Timothy> the high it could go is 2.25 [12:29] <Timothy> http://charts.dacharts.com/2007-04-25/smallcaptrading_11.png [12:29] <Timothy> the same chart [12:29] <Timothy> this is more clear: [12:29] <Timothy> http://charts.dacharts.com/2007-04-25/smallcaptrading_18.png .............. [12:34] <dominoes> will be tuff to break 2 [12:35] <Timothy> easy [12:35] <Timothy> sellers are at this level [12:35] <Timothy> 1.80s [12:35] <Timothy> then greedy kicks in [12:35] <Timothy> people would look to fill the gap [13:53] <dominoe> PCSV out 2k more 1.99 [13:56] <mr> tim is right [13:58] <dominoes> tim called it like a champ [14:00] <Timothy> yes, because I am not in [14:00] <mr> yup [14:00] <mr> like i said [14:00] <mr> when you are not in , you see very clearly [14:00] <mr> w/o emotion [14:00] <Timothy> better I make the call and someone trades for me [14:00] <Timothy> emotion free [14:00] <Timothy> rational trading
For some reason, ET stripped the names with <...>, so repost the chat ............ [10:43] Fred: tim take a look at PCSV, strictly technicals [10:43] Fred: does she bounce? [10:44] Tim: sure [10:44] Tim: let me plug it [10:48] Tim: Fred, the volume on it is way down [10:48] Tim: on weekly chart, support is at 1.5 [10:48] Tim: on daily chart, support is at 1.56 [10:48] Tim: http://charts.dacharts.com/2007-04-25/smallcaptrading_09.png [10:48] Tim: http://charts.dacharts.com/2007-04-25/smallcaptrading_10.png [10:48] Tim: double click the chart [10:49] Tim: The BUY/SELL signals are crystal clear here: [10:49] Tim: http://charts.dacharts.com/2007-04-25/smallcaptrading_11.png [10:51] Fred: are you sure about the volume being way down? it's still pretty impressive volume for a BB ............ [12:24] Fred: started at 2.56 yesterday [12:25] Fred: started w/ 4500 @ 2 at the open, cheapest buy was 2k @ 1.545 today [12:26] Fred: still holding 9500, I've sold 7500 and it's booking me $612.50 profits [12:26] Fred: but my cost avg just increased dramatically [12:28] Fred: tim, what does your chart say is the peak on the bounce [12:28] Tim: PCSV bounced right off the support [12:28] Tim: the high it could go is 2.25 [12:29] Tim: http://charts.dacharts.com/2007-04-25/smallcaptrading_11.png [12:29] Tim: the same chart [12:29] Tim: this is more clear: [12:29] Tim: http://charts.dacharts.com/2007-04-25/smallcaptrading_18.png .............. [12:34] Fred: will be tuff to break 2 [12:35] Tim: easy [12:35] Tim: sellers are at this level [12:35] Tim: 1.80s [12:35] Tim: then greedy kicks in [12:35] Tim: people would look to fill the gap [13:53] Fred: PCSV out 2k more 1.99 [13:56] Bill: tim is right [13:58] Fred: tim called it like a champ [14:00] Tim: yes, because I am not in [14:00] Bill: yup [14:00] Bill: like i said [14:00] Bill: when you are not in , you see very clearly [14:00] Bill: w/o emotion [14:00] Tim: better I make the call and someone trades for me [14:00] Tim: emotion free [14:00] Tim: rational trading.
i tend to trade the same way. volume is a good "sign." i can't belive how many people say $5k to $20k is not possible each month. what are you guys smoking? haven't any of you doubled in two days or less trading options? i don't understand how you guys can be soo narrow minded.
Okay, this is a stock over $2 and with over 1.2 mil shares traded today, I don't think it is a penny stock by ET standard. This Chinese gas company has great fundamentals, revenue/profit growth rate is very high, the P/E ratio is low, no debt. I've parked 40% of my $ into this stock today, I expect this stock goes to $2.4-2.5 in a few days (not in weeks/months). This way I will trade less:
Volume change is definitely a great indicator, I use it in bigger timeframes and smaller timeframes. The links below are 150 tick charts on AMZN yesterday, I posted them in real time for a friend. The light blue candles are the volume changes, when the volume slowed down and/or started to change - either up or down, the candle changes to light blue color. Combining this indicator with some other indicators (such as stochastic, resistence/support, fib levels), one can make good decisions on entry and exit with less false signals in the trading timeframe. http://charts.dacharts.com/2007-04-25/smallcaptrading_13.png http://charts.dacharts.com/2007-04-25/smallcaptrading_14.png http://charts.dacharts.com/2007-04-25/smallcaptrading_15.png http://charts.dacharts.com/2007-04-25/smallcaptrading_16.png
Today I did okay. I bought 2 AAPL $100 calls yesterday and sold them at $3.5 at the open. When AAPL tanked after the open, I got a little aggressive, I bought 10 calls when the stock was at $100, I sold these calls for a fat loss minutes later. Not only I lost all the profits on it, I lost $410 net on these calls, I should have hang on a little longer or just buy 3 calls, or get back these calls when AAPL was at $99. I just didn't want to spend more on commissions. Another big mistake I made - I bought 3 BIDU $100 calls a few days ago, I thought BIDU earnings was Friday night, I sold these calls (+BDQEB) for $700 profit on the run today. BIDU earnings was out in AH today, BIDU shoot up $22, I could make the whole month's bill on these three calls. Well, such is my life. I am somewhat disappointed about what I did, why I didn't double check the earnings date :-(
Okay, SNEN 2.55, my 1st target is met, I'm out half of the shares at 2.50s, I will ride the rest of shares for the next couple days, it has more potentials to the upside. My first target met in one day, I am happy with it.