Hi Vivek, I have a slightly different approach then you, but I hope you don't mind if I post a few things here every now and then. I do more short term trading than day trading because I don't believe that the average investor can make money doing that. To day trade, you have to take large postions and sit in front of a real-time screen that also has Nasdaq Level 2. Most day traders look to make an 1/8 or 1/4 on each trade. They buy blocks of 5000 share or more to make it worthwhile.
I still like DIGI as posted yesterday. You can buy this stock at 14 3/4 or if you want to be more patient, wait for a pullback. But I don't see it going lower than 14. If it breaks that level, I'll have to reassess the situation. As I stated before, I'm long 4200 shares and plan to hold the stock for a while. Those who want to trade it could easily see 16 1/4 to 17 in the next 2 weeks.
I sold half my OLM position yesterday at 15 3/4 to take profits, but this was mostly to reduce my exposure to the stock. If it goes down a little, I will buy it back. My target for the other half is 17.
I held VCAI overnight because the odds favor a gap higher opening this morning. For those of you that took my recommendation and bought this stock, use your own judgement for taking profits. My target is $12, but I could sell at anytime given the high volatility. I will post immediately after I sell my stock. I immediately posted yesterday after I bought it at 8 1/2, no delays, no games. This is real money that I'm trading with. The asking price actually got to 8 1/4 after I posted so those of you who saw my post could have bought the stock a little cheaper than me. Beware that the VCAI CEO is appearing on CNBC this morning at 9:30. I think it's ET, but I'm not sure. Keep your finger on the sell button on this one. I think it will continue to rally but it's better to be cautious to protect profits.
Another potential trade is to short BBY on a rally. This stock has the potential to decline to 10 because I expect their Nov sales to come in worse than expected and fourth quarter earnings to be much worse than most people think. The company has lost it's earnings momentum and the stock is firmly in a downtrend. If you are uncomfortable shorting stocks, then buy the Jan 15 put options.
I'm searching for some new ideas, but nothing else for now.
Dan |
