A Tycoon's Trading Diary

True story of the making of a tycoon. Options trading, trading systems, wealth, money management...

Thursday, March 01, 2007

Thursday's blood shed

My open position showed some real weakness lately. Now, it has passed my 50% stop loss rule for looser trades. Albeit there were no trades under $2.35 the bid level is down at $1.95. Although a short term support is broken, I still pretend to stay in the trade if it goes up during the day (also mid-term support - last close before gap up @ $120.74 - is still away).

No new watchlist entries

Trade candidates
Although markets are in correction, I have run the queries.
TTC-A: DECK (long)
MACD: (loads of shorts / sell)
GAPH: (none)

Trading session
There is still room for ACL I think, thus I stick. Also, I was looking at the activity that was pretty low, mainly bidders trying to force it down.
I did not try on the trade of DECK, as I take the IBD warning of not longing till the rally (Bull's market) is not confirmed. Now, the market is in correction.
Was trying on an optionized FX trading setup (Turn-to-Trade) that uses 2 and 3 SD Bollinger bands. But none of them were fine for a trade (moving up, while I tried to buy Puts).
I think it is high time to buy Dr. Setphen Cooper's Windows to Wealth, where he details more options trading templates and technical analysis clues.

Open position(s) at market close 28 February 2007:
.ACLEG ACL MAY 135 Call



$1.95
($450.00)