Tuesday, May 22, 2007

MaoXian -- Trading for Dummies -5


Questions:
1) Why would you be paying attention to this stock on Monday, August 25?
2) Is the trend up or down? Would you be looking to get long or short this stock?
3) Where would you get long/short this stock on Monday, August 25?
4) Where would you put the initial protective stop?
5) When would you stop trading for the day?
6) Where would you exit the position?
Answers:
1) Because it was unusually active, and very volatile.
2) Down. You’d be looking short.
3) Short at 10.54 on sell stop below the 11:00 bar.
4) Tighter: 10.60. Looser: 10.68.
5) Right after you enter the position or lunchtime, whichever comes first.
6) End of day. Could cover half, carry half, or just close it all at once.

No comments: