Obi Wan once again tried to explain the Stop-Loss concept. Picture: Getty Images
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Each Monday, Stockhead’s resident day trader gives us a peek at the highs and lows of his trading diary and hints at what might be coming this week.
Platform used: Marketech
Round Trip: A round trip is $10 up to $25,000 and then above $25,000, commission is at 0.02% in and at 0.02% out.
Rules of engagement: Never hold any positions overnight (unless forced) and try to avoid any suspensions (if possible). No shorting.
After Westpac said it was were dropping its bid for Tyro, the stock opened down 19%, so let them settle and had a quick nibble.
Gave me my first profit of the week on a very small capital outlay.
Before all of this, picked up some NHC as they also opened a bit lower and looked like they were turning. Bt 5,000 at $5.68 and had a limit in for another fiver at $5.65.
Took a quick turn and they never came back to my limit, so cancelled it and got into the 11.00am run-up in CBA. I noticed they were back on on Friday and at below $105, I thought they were lining up well.
In less than 30 mins, they were out on a limit at $105.39 for a 49c profit and that was my trading day over.
As I have said before, the very first trade on a Monday morning is my most nervous as it mentally sets up the week and is a confidence-maker or breaker.
Today’s little trade in Tyro did it for me today and so I never looked back. Up $720.
Recap
Bought 5,000 NHC @ 5.68
Bought 2,000 TYR @ 1.230
Sold 2,000 TYR @ 1.270 ($80 profit)
Sold 5,000 NHC @ 5.71 ($150 profit)
Bought 1,000 CBA @ 104.90
Sold 1,000 CBA @ 105.39 ($490 profit)
Had a cracker of a trade in NHC today. Used the same tactics as yesterday. Got set in 5,000 and left a limit buy in for another 5000 at $5.65.
This time my lower limit got hit and then after going about 3c or so they put on a rally. Now they opened at $5.80, had a high of $5.82 and then went all the way down to their low of $5.60 at 10.30am.
They then rallied to their high of $5.82 seven times with 1.38pm being their last high touch, and then finished at $5.74 on 3.8m shares traded for the day.
Up $900 without too much effort and capital tied up. Hope some of you got in on this today as well. 🙂
Recap
Bought 5,000 NHC @ 5.69
Bought 5,000 NHC @ 5.65
Sold 10,000 NHC @ 5.76 ($900 profit)
FMG looked like breaking out upwards and I don’t know why, but had a brain snap and brought some CBA way too early.
EVD got sold down because Woolworths sold a chunk of them. As all the news was out, got the timing right and got a 4c turn FMG behaved themselves but with CBA I had to endure some pain.
Third time lucky and they eventually came my way and tried to get out at $106.20 but in the end had to go a couple of cents lower before coming up for air.
Plus $940.
Recap
Bought 1,500 FMG @ 19.97
Bought 1,000 CBA @ 106.32
Bought 5,000 EDV @ 6.33
Sold 1,500 FMG @ 20.19 ($330 profit)
Sold 5,000 EDV @ 6.37 ($200 profit)
Bought 1,000 CBA @ 105.94
Bought 1,000 CBA @ 105.88
Sold 3,000 CBA @ 106.18 ($390 profit)
Today was a tale of two cities! Firstly NHC, who looked like they wanted to break upwards, which they did and then PLS, who wanted to break down, which they also did.
Looking at PLS first. They came out with some disappointing lithium sales and their price collapsed on the opening. They headed south towards $4.00 and today was a classic stop-loss beauty.
Once they cracked down below $4.00 they quickly fell to their day’s low. I got set at $3.97 and waited. A bit of pain before the gain as they fell to $3.88 before bouncing.
Just remember that CFD market makers know where the stops are and have to cover positions in the real ASX market. So today’s chart is a textbook classic.
Looking at going the other way, NHC looked like they would break upwards and crack the $6.00 on going northwards.
Another textbook classic. Rode them up and through the $6.00 level and I’m out at one pip below the breakout.
As they say, every chart paints a story and today’s two charts should be hung in the National Museum of modern trading, for all to see :))
Plus $850.
Recap
Bought 10,000 NHC @ 5.93
Sold 10,000 NHC @ 5.99 ($600 profit)
Bought 5,000 PLS @ 3.97
Sold 5,000 PLS @ 4.02 ($250 profit)
I came in today thinking this is my kind of trading day. Big fall in the Dow and NASDAQ, so I was mentally preparing for things ahead of the trading day.
I thought CBA would be a goer as would maybe RIOs but nothing went as I thought.
So, in the end I had a donut day and if you see the charts, you will see why.
Being a Friday, I was thinking the opportunity would be somewhere between 11.00am and 1pm, with a sell-down into the close ahead of Wall Street’s Friday session.
Finish the week plus $3410 gross and $2890 net.
Even NHC broke up in a solid session and unless they come back towards $6.00, I fear our love affair may be over.
Mining
Mining
Mining
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