I started my trading career with Tim Sykes and when my breakout strategy did not work for me anymore and when I was lost, I joined Investors Underground. The DVD’s that helped me the most were Tim Grittani’s Trading Tickers and Nate Michaud’s Tandem Trader. Software that has helped many trader can be found here: Trade Ideas software.
My watch list for the day: Short list: TRXC GERN ARQL VSTM SHLD I AVGR SESN ASNA ARWR SMRT NIHD and DRRX. DRRX and TTOO also have some long opportunities looming.
Apart from TRXC, there were no familiar stocks in play pre-market. Which did give me plenty of rime to make a cute little blog post about chart setups that work for me now. You van read it by clicking here: the setup. I was also looking at GERN, but that ticker was lacking volume. Which is one of the criteria I look for when I am reviewing my watch list. AVGR is also a ticker I have traded in the past, so I had some familiarity with that ticker. To my surprise, AVGR was easy to borrow this morning. Such a no-brainer trade and I started my attack at the $2.00 failure, for a nice 5.5% gain. I disregarded DRRX and TTOO because the price action was not there. Also, I was tied up in AVGR and TRXC and I am not a multi tasking spider! Finally, GERN was a no go for me too. Mostly due to the volume. I would’ve liked to see some more push towards that 5.2 0 resistance with some volume. As I am expecting some bag holders there, that would be an easier short.
This ticker has been on my watch list for quite sometime and I have traded TRXC a few times already. I knew that $4.20 would be tough to beat and, also, that there would be some support at 3.75. What I did not expect is the extra 10 cent bonus we got from 3.50 to 3.40. You would have expected 3.50 support to hold. It did not, at all! I patiently covered my short at 3.45ish when 3.40 held. I was just a little late with pulling the trigger. The open was a bit chaotic, with 5 cents spreads. When this started to settle and TRXC started to base and flag at 3.75 – 3.80 I knew I could start to size in. When 3.75 failed I added size at 3.70 test and easy road from there to my cover point. Kindly note that a trade changes shape (emotionally). Where I was confident before, I lost confidence when I added my shares at 3.70. Although my conviction was there, I knew the risk too. If 3.50 did hold, I knew I needed to cover ASAP as this might re-test 3.80 again and smoke some shorts along the way. Kind of what GERN did before.
Anyway, see here the TRXC chart:
This trade was more of a panic trade, then really a good setup kind of thing. Not my setup, but my plan was to short this if $2.00 failed. And I did, ugly and got lucky to be honest! Quick scalp and done. I did’t not even see the VWAP failing or any support or resistance. This was a pure and lucky trade and am happy that it quickly broke that 1.90 support. Clean trade and done for the day.
kindly note that this blog post should not be treated as advice, trade advice or any of the sort. Always trade your own plan, cut losses quickly and never follow any alerts. Always do your own research and trade accordingly!