Discovery Laboratories, 30-minute Chart
1) Why would you be paying attention to this stock on Tuesday, November 25?
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 Tuesday, November 25?
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?
1) Because it was unusually active, and very volatile.
2) Up. You'd be looking long.
3) Long at 8.15 on a buy stop above the 11:00 inside bar.
4) Initial Protective Stop: 7.87. (max. 3.44%)
5) Right after you enter the position or lunchtime, whichever comes first.
6) Stopped out on the 12:30 bar.
Sentiment was positive so I was once again looking for a long position. DSCO popped pre-open and was unusually active (12,000+ trades
on the day) so I had my eye on it. MRVC would have been a better play in hindsight but I went with DSCO.
After getting long, the stock immediately went nowhere and I was stopped out on the 12:30 bar. What a dud.
I just finished reading George Wollsten: Expert Stock Trader, which I renamed George Wollsten: Lunatic Stock Trader. Old George
made a few good observations when he wasn't raving about the crossing of Saturn and Jupiter by Mercury:
"... [he] noticed that as soon as he had made a commitment and the market immediately went against him -- that was bad. On the other
hand, he had noticed that as soon as the first few sales went with his commitment, he was able to close the deal with a profit."
That was written in 1946 and it's as true now as it was then.
Screen capture of my intraday Watch List:
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