Why dont you just go "all in" to one of these risky bounce trades? I guess you missed it recently with the banks and FNM/FRE where you could have doubled your money on the bounce.
Not sure I would have played FNM or FRE for a bounce. The risk was much. I did play MA for a bounce (OPTIONS), but I went in too early and exited too early (Bought Jul 270 CALL) at 9.30, sold after a few days at 2.00 as it kept going lower. had I held till Friday (day before expiration), I should have sold at 11 (a little profit). Had I sold the prior day (Thur) I might have sold for 21, making a handsome gain. Unfortunately, there was no knowing when the bottom was to be.
It was rough picking a bottom on the momentum stocks last week (POT, MA, BIDU, AAPL, etc); they got tired of their previously tested support levels, and the rebounds were not as strong. I made a nice profit on POT calls Wed when they dipped to $216 the 2nd time and rallied to $227. The next day I had my finger on the trigger when they dipped to $216 again (they always bounce off that), but the 3-minute chart action and Level II suddenly looked weaker and made me nervous. They had a very tiny rally that failed and the second they broke their 50 SMA ($214), a lot of stops got triggered and the selloff was immediate.
Hey Neke, hope your week's going well. Knowing you and I trade options on a similar basket of stocks, I wondered if you noticed POT testing all its support levels today. I went long Sept calls when they tested 205 short term support this morning, sold at 209, then end of day went long again when they tested 198 2-week support, now holding.
Do you know they report earnings before market opens tomorrow? I avoid speculating before earnings. I know they are going to beat the estimates silly, and guide higher, but it is difficult to say how the market will react.
That's true, market tends to react crazily to anything! If they miss, look for me at the bottom of the pool :eek:
Youre overtrading. Dont trade every tick. Trade only what you very confident of. And you need to hold onto positions more than a day. Youre trade noise, which is pure gambling. Its skill when you winning on the week, but what is it when youre losing?