Monday, November 1, 2010

Day Trade (TNA)

This morning I was able to get into a day trade with TNA.  I was hoping to actually get into a couple of earnings plays but the potential plays quickly faded away with poor price action.  TNA however proved to be a good setup and I will go through how it was setup and played.

TNA 1min
 This morning's high (marked in green) was put in at 8:31am (exactly one minute after market open).  After the market dips down and confirms that was indeed the high, I put in a buy stop order.  A buy stop order tells the broker to buy shares when a stock's price goes up and hits a certain price.  My price was set right above the market high at 8:31.  I put it above the high to make sure the market is going to push above that price and hopefully continue going up. 

I drew the line in the graph to show when the price crossed for my stop.  The market quickly moved up like planned but then started to sell off hard.  After a nice little sell off the market turned around and started to push up.  I continued to move my stop-loss price up for a loss, breakeven, .5% gain, and a 1% gain.

The area marked in red at 9:06am is when I closed my full position and walked away with a nice gain.  This was a clockwork trade that net'd me a good profit.  Even though I was watching the trade for an hour I was only in the trade for 15-20min.

And I found out later in the day, to my surprise, that I exited the trade at the high for the day.  That doesn't happen much and it is a great feeling.

Here is price action for the whole day:

TNA 1min

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