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Saturday, September 27


Trading for Dummies, Q&A #32



Ask Jeeves, 30-minute Chart

Questions:

1) Why would you be paying attention to this stock on Friday, September 26?
2) Is the trend up or down? Would you be looking to get long or short this stock?
3) Where would you get long/short this stock on Friday, September 26?
4) Where would you put the initial protective stop?
5) When would you stop trading for the day?
6) Where would you exit the position?

Answers:

1) Because it was unusually active, and very volatile.
...(showed up at 9:44 as an Abnormal Character)
2) Down. You'd be looking short.
3) Short at 18.71 on a sell stop below the 11:00 bar.
4) Initial Protective Stop: 18.98. (max. 1.44%)
5) Right after you enter the position or lunchtime, whichever comes first.
6) End of day. Could cover half, carry half, or just close it all at once.


9/26 abnormal characters

9/26 abnormal characters




Previous Entry >>> Trading for Dummies, Q&A #31


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