Archive for February, 2006
Watch Trades for Clues
February 6, 2006 at 8:50 am
Some trades are profitable while still offering us clues as to just how well they are working. While our primary objective is to turn a profit with our trades, it is certainly important to monitor the behavior of our trades to do our best to determine what we should expect going forward.
I highlighted SNDK in my stock newsletter on Wednesday night with lower highs in place and a bear flag pattern which had subsequently formed. The short selling entry point was a downside break of $66.00 at the lower line.
The following day, SNDK triggered and showed us $0.98 in profits. On Friday, it dropped another $0.97 for us, showing us a total profit per share of $1.95 from our short entry.
While I do like the fact that this short sale trade is working, I am a bit concerned by HOW it is working. Although beggars can’t be choosers, I would much prefer to have seen volume kick in with higher levels on Thursday or Friday to indicate intense selling in SNDK as it confirmed the bear flag. So far, we’ve gotten profits but it looks a bit iffy to me. As a result, I’ll plan to take partial profits to lighten up on shares in case this stock bounces. Doing so will prevent me from giving back full profits, while at the same time allowing me to stay in the trade if a larger move develops. Perhaps soon SNDK can find greater downside volume, but it’s important to operate with the facts we are given as traders, so I’m turning slightly cautious on this trade which is working but not technically sound.
Jeff White
President, The Stock Bandit, Inc.
thestockbandit@thestockbandit.com
Herman Miller Aeron Chair
February 2, 2006 at 1:20 pm
I never thought I would spend $750 for an office chair, but when my high-back leather chair left me feeling like an old man at the end of the day, I knew it was time to consider a better alternative. I’m way too young for that!
The Cadillac of trading chairs is the Herman Miller Aeron. It’s fully adjustable, and they thought of everything – forward tilt, seat height, tilt tension, lumbar, tilt limiter, and more. So, I went to the local showroom to investigate, and I couldn’t believe the adjustments I could make to this chair to ensure that my posture stays good all day. The material doesn’t get hot like a leather and foam chair, which makes it comfortable all day to park myself in when trading.
What really sold me was the idea that I could get up at the end of the day feeling just as good as when I sat down, and after many months, I can honestly say I haven’t been let down. Let your next good trade pay for a quality chair…..your neck and back will thank you!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
