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April 1, 2011
Share ThisThe stocks I focus on for Random Moves are the one showing certain pattern - meaning stable over last e 3 to 5 days and use Average True Range to pick a buy and sell point.
Is this trading bullet proof - No way. There will be times when one has to take a loss and use Great (not just good) Trade management.
Is it always perfect - NO - Example I traded GM today three times = bought and sold and then it ran away from me - I had a limit order to sell at 31.47 = got filled and it ran up another 75 cents. Am I pissed off - NO I had bought some GM calls for May 30 call and they made me good money. That was not part of random moves. Sure some of you may laugh at my being marron to let the profit run away. For those folks I have one question did they trade and make real money to take home and put food on table and no risk left on the table.
If one knew what happens in trading world then WHAT ARE YOU DOING HERE?
X option May 52.5 calls traded between 3.70 and 4.50 and closed at 4.20. Did one had an inkeling that the options will not keep running up. As a matter of fact i sold part of postion at 4.45 and bought back at 4.05 and sold the nw buy at 4.20. I have no idea where the stock is going? I had bought some at 4.05 amd 3.90 on morning weakness.
This does not mean every trade I made today was winner - no I am sitting on 20 cent loss on my VMW may 80 / 90 call spread. i have just 2 contracts on volatile stuff like VMW - I have MGA 45June call sitting in 50 cent profit - did not take profit. I have 5 JNJ May 57.5 calls having $2 loss per contract - bought yesterday - had sold at higher price and made some money yesterday - then bought back on pull back. I am still Ok with JNJ leading to earning on April 19.
Enough of rambling.
I will use HPQ, USB, X options on Monday for Random Trades.
I am taking limited risk for limited rewards.
