All...
I just got done earlier telling everyone that I wasn't planning on getting into real trading with 3.2. I planned to just use it to get refamiliar with OT, then get serious when I got 3.5.
Well, I couldn't help myself. OT, right out of the box, with no tweaks at all from me, gave a beautiful signal to buy CEPH following Thursday's action.
Taking others advice, I immediately checked CEPH on my charts set up for the kind of trades I like in WOW. There it was. A breakout to new highs in a rising trend. As far as I was concerned, that was all the confirmation I needed to enter.
I checked prices and CEPH was trading at 15.125 around mid day. I watched it begin to drift back a little. When it traded at 15.0625 I put in a limit order to buy at 15. Within the hour, it ticked down to 14.9375 and I was in.
Doing exactly what I commanded <G>, it immediately turned back up and closed today at 15.375, for a nice one day gain.
Seriously, I'm a 10% type trader. I always think in terms of percentages for profits (and losses) on a trade. CEPH has now risen into a gap formed last spring. The bottom of that gap is near 19.375, which would be a terrific move from here (about 29%).
I'll be happy to get around 10% in a short term trade, and will exit on signs of things not going well, NO MATTER what OT has to say. On the other hand, if it makes a quick rise to the 17 area, I will sell calls against this position for some quick cash. If the rise continues, I'd get called out at 17.50 for 16% plus the option premium of someplace around .5 or .75. All in all a perfect trade.
A trade I have to say, I probably wouldn't have spotted without OT. I track over 3000 symbols. As Ed Downs says in his video, "OT is a prospecting tool." That's exactly how I want to use it.
On the other hand, things could go straight south and I'll be out of the dog early Monday morning with egg all over my face.
Ken |
