Fri Sept 11 2009
MGM sold 400 shares for a $307 profit in premarket here in actual trades.
WHY did I sell? See the 1-minute shooting star on the advanced chart? Ca-CHING. I'm very thankful to my colleague Steve Nison for
all his work on showing how to use candles; this shooting star was a great trade confirmation exit.
The fact that it was at near whole-number resistance at the 12.0 even was another confirming exit signal for me in this trade.
It's just one of many of the powerful approaches he and I cover in our
http://www.StockTradingSuccess.com 14-DVD system.
I will be rebuying it once it breaks resistance to the upside (eg over 12.1 top shadow of shooting star), or if it does a sharp drop and pivots
(preferably with at least a 1-min hammer for support before buying); I'm standing clear for now.
Hammers, shooting stars and three-line breaks are my favorite candles, and are what I call the "uncertainty killers"... eg they provide
exceptional support to trade decisions for me whenever I trade.
In this case, I was right in my exit, but what if for example it had kept going up after I sold? (it didn't)... Well I'd just have started re-buying
my shares back in over the 12.1 resistance if it traveled up. If it chops and drops (which as of 9:21am EST it still is, at 11.77 now), then I'm
right to have "sold it and stand clear" in the trade to book my profit.
__________________
Good trading,
Ken Calhoun, Pres.
http://www.TradeMastery.com (NEW for 2012)
http://www.BreakoutMastery.com
http://www.MomentumDoubler.com
http://www.TradeWebinars.com
http://www.ETFMastery.com
http://www.ADXMastery.com
http://www.ChartScans.com (daily alerts)
http://www.DaytradingUniversity.com
http://www.TradingTelevision.com
http://www.StockTradingSuccess.com (w/Steve Nison)
p.s. per sec/cftc/ftc regs, none of this is to be construed as trading recommendations, it's just for educational use only, so you can "peek over my shoulder" to see what I'm doing with some of my trades. See
www.daytradingu.com/disclaim.htm for full disclaimer.
These pages contain excerpts of actual trades I've made; it's not a complete record of every single trade I make. Some days I'll take trading wins or losses that I do not take the time to screencap and post online; it's a partial record of some of my trades. Note that I am not making income nor profitability claims of any kind. Most traders lose regardless of what they do. The majority of my personal income comes from my training business. I try to capture the best highlights of successful days so you can see practical examples of what I'm trading. There are also days in which I incur losses (and wins) which are not shown. This is simply a partial record showing highlights of some of my successful trading days. No representation is being made that other traders, including customers, will be able to trade like I do. Generally expected (average/typical) trader results are that all traders incur trading losses and most do not become profitable, regardless of the training they get. Trading is a speculative, high-risk activity.