Thursday, June 28, 2007

 

Buy - 1 BZH Aug 30 Put @ 4.30

Bought this on a break of the opening range high. Was a little hesitant, since it was already 8% down, but decided to go ahead with it. I think a lower risk short entry on this would be around (IMO) 27.50.

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Comments:
I have a problem with when to sell sometimes. i bought DRYS SEP35 @ 500 about 2 weeks ago and sold yesterday. good profit but missed todays jump. when do you sell a position?
j.M
 
Hi j.M,
I'm having the same problem too... the timing on my sells is pretty poor. After looking at my previous trades, I've realized that I've cut short a lot of extra profits.
A few reasons being-
1. Not being patient enough.
2. Keeping my stop-losses too tight.
3. Selling out of panic if the stock shows slight weakness.

I'm still looking to find the right balance.

Another thing that I've noticed myself doing is that I say I'll take my profits now, but revisit the stock again if it moves higher. I don't do that, something that I think I should change.


Anyway, congratulations on your trade. It looks to me that you entered it at the right time. Let me ask you a couple of questions-
1. What made you enter this trade?
2. What made you sell?

AJ.
 
hey AJ,

thanks for the info. well to answer your questions...it seems that you and i have similar "buy high, sell higher" strategies but this is how i compile my watch list:
- each weekend i scan the IBD to find the best stocks fundemantly (EPS above 80, RelStr above 90, Group Str A or better)
- then i check each stocks chart to make sure i like the trend (above 50MA)
- i decide to buy when the stock is oversold (W%R -90%)

i only buy options and if i stick to the filters above it's common for a 100% profit (hold time can vary). i usually sell when i get 100% profit or if the stock breaks to 50MA to the down side.

i sold DRYS because i was out of town and was nervous the market would get hit so i set i tight limit..

i would like to throw my daily picks to you sometime too.
j.M
 
Hi j.M,
Yes, IBD is a nice place to start for strong stocks.
Would definitely like to see your watchlist.
AJ
 
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