Thanks, niteowl! Right now we have unrealized losses from last year that carry over, so we will simply apply gains against that, then recognize gains beyond that as short term capital gains, taxed as regular income. I'm not too worried about the wash sale rule right now, because my plan is to take very small losses quickly, and if I replay the trade when indicated, I would expect to take a pretty reasonable gain on it. So I don't think it will matter all that much this year. Of course that will all change when I start posting big green days like Mr. Weinstein and Red_Ink, which is absolutely my goal by next year.
Didn't it just kill ya to see MFE get clobbered after it rounded the whole #? I was in it too...same result as you -filet_o_fish
I was considering the re-entry, but saw MYGN back in my short zone and MYGN was weak vs the market earlier, so I thought it was good for a larger quicker move. What really kills me is that I placed a target order instead of just letting the trade ride!
NoDoji, Great educational journal! Care to elaborate on your MFE chart? I have some thoughts of my own but wanted to know what you concluded from this trade.
Thanks, IWT. I believe the MFE trade setup was solid, and my stop was excellent. My only regret was not exiting at b/e when the L2 price action landscape changed. I'm not sure how to describe it but there's a certain look the L2 gets that I've come to recognize as an early alert system for a trade that no longer has the power it had initially. However, I was willing to give the trade the benefit of the doubt since my stop would produce a relatively small loss. Had I not been so excited over MYGN's setup, I would've put on MFE again when it pulled back from the second test of the new high, and my stop would've been .10 cents above the entry price. As you can see, that was a great short.
NoDoji, Thank you for taking the time to recap your own trading style and anwer my (and everybody else's) questions to such great details. Now get some good night sleep and have a great trading day tomorrow! OC
- $79.00 This result was caused by taking a tiny percentage of my valid setups. I'm not sure why I'm not taking all my setups, only a few. This is a big problem, because by acting on all my signals today I would've made ample profits. Short SYNA @ 26.95, L2 weakness indicating failure to make a new high, stop @ 27.06, moved to b/e when it dropped to 26.76, spiked and taken out for about b/e. I should've known better than to short a stock with 60% short interest. Give this one a month to shake out all the shorts and it should drop like a rock. Short MFE @ 33.95, stall near HOD, stop @ 34.10. Didnât like the L2 action after the dip to 33.91 and back to my price, but left stop in place. Second day in a row that my L2 reading wouldâve saved me money, so I will listen to it from now on. Offered 1.35 NFLX APR $45 calls, canceled order and later offered 1.45. Unbeknownst to me 2 contracts filled @ 1.35 before I canceled. My order status did not pop up when that happened. Moved offer to 1.40, filled. So 7 contracts @ average price of 1.39. Short MFE again @ 33.84, after breakdown through intraday SMAs rallied to the SMAs and weakened. Covered @ b/e because I didnât care for this one any more based on L2 indicating a reversal. Looked later and indeed after milling around my price for about 20 minutes, it broke to the upside very hard. I would like to have the confidence to take a long position with tight stop when a stock consolidates and I get that "feel" from the L2 action. The breakouts are usually very strong and fast, good for quick profit taking. Watching HANS for a short, ready to place order and platform vanished. Later checking my NFLX order and saw that a HANS short had gone through @ 35.68, holding at a loss. Short SNDA @ 40.08 overbought, lower high. Price dropped very briefly then turned, covered quickly (and wisely) for a $44 loss. The reason I acted so quickly on this one is because the setup indicated the drop should be strong and certain and when it wasn't that invalidated my trade. Short MFE @ 34.22 overbought, failure to make a new high, SPY overbought. Covered @ 34.05 oversold for an $86 gain. Took almost the entire move from top to bottom. Bought SNDA APR $40 puts for 2.00.
Nodo from your post on other thread,I learn that you are thinking of trading index future.Its totally different animal,I lost my shirt in index future in 2006.I was wildly profitable on demo ,and jump in the index game,trading ES,NQ,YM.I am not putting any fear in your mind but its very risky ,risk is always three times than reward,so one has to be right 90% of the time.I did very good today shorted CELG 5k/.49.