Real Money Trade TRN

I entered the following trade today at 10:43 AM EST.

TRN
$49.69
Jan 50 Call at $3.60

FP up on Daily Chart (hitting top BB is a concern)
Monthly chart has literally just been trending up
Weekly is bouncing off the 8-ma (I'm a late here)

Next earnings at end of October
As a group, Industrials are doing well (I use XLI to track the industry group)

I'm not sure what a good exit price is...since Daily is at Top BB. A previous high was established at $50.40 so that could be it. I put in a GTC for 100% profit if something becomes more clear.

PS - I'm well aware that I shouldn't post a trade until it has completed since it will interfere with my thought process about the trade.

I am in the same trade.....however mine is a W&O trade.

I entered on the 233 candle close on 9/16. 207 shares at 48.18

I would not call today's daily candle a fat pitch or SLI as it is now referred to.

Sonic....not to sway your decision to stay or get out.....but if you also look at the W chart TRN is forming a mat hold formation, which is stronger than the rising three!! Looks good from here.

FM



Edited 1 time(s). Last edit at 09/18/2014 01:13PM by fireman1984.

FM your entry is awesome! I have so many tickers in my watchlist (100 stocks) I truly have a difficult time going through them all in a 10 minute window. If I want to do an honest job it takes me much longer like 30 minutes. Do you have any shortcuts? My intraday scanner on Tos is busted and I haven't heard of any fix having been released.

Sonic,

TRN is a stock split, that is how I found that one. I usually go through my splits twice a day....123 and and if I can 350-4. If not I will check it out after the close.

I have 140 stocks in my basket and I will narrow that list down to a much smaller number every weekend. I am looking for stocks that are moving well and stocks that look like the current move may be coming to and end. Then I will look at only those stocks for the week. That simple! I will look at those stocks somewhere between 115 and 145. Generally I don't think it matters if you get in .30 or .40 cents past the entry as a big chart trader. Sometimes it backs up and you can get a better price so all in all it evens out. Hope that helps!

FM

My process is very similar to fireman. My 100+ list is narrowed down significantly for the week as noted in another thread. My focus during the week are those that I think have big chart moves that are coming to an end, indicators that appear to be in a good position to give me FP/HRFP in upcoming week, and possibly chart patterns I like to see (double bottom, divergence, HS, etc.). Also looking for major support and resistance levels to further confirm my thought process. My watch list ranges from as little as 5 in a slow, choppy, nothing seems to be setting up week to maybe 20 or so in a busy week. The fact that I do most work on the weekends and a good follow-up on Tues or Wed night lets me quickly review during market hours. I have already completed my research. During market hours I am simply looking for confirmation, entry, and exit signals. I look at the market sometime around 9:45 to enter or exit if I have a decision to do so the night before and quickly look at all charts on ES (S&P emini futures) to get a feel for the mood. I then go about my day and spend about 10 minutes reviewing starting no earlier than 1:10 - 1:15 but definitely finished by 1:30-1:40. As fireman stated I am not concerned with missing .30 to .40 on the entry nor am I trying to get a jump on the 1:23 close. The busiest part of my day is between 1:00 - 2:00 so I do what I can when I can. Occasionally I take a peek between 3:45 - 4:00 if time permits.

NCT

So with the Daily TRN chart deep in the top BB I decided to exit the trade. I also sold because the Dow futures Daily were deep in the bands. Also, the XLI (Industrials sector ETF had a very big red engulfing candle on the Daily).

I didn't make much on this trade. I had purchase the Jan 50 Calls for 3.60 and ended up selling them for only 3.90. Taking into account transaction costs, my net gain was $65 or 6%. In GW's system, that's nothing to get crazy over. I struggle a lot with these small gainers. When I hold longer, then I end up with some big losers! For a big chart trade I like to see nice big gains, but really didn't feel like losing on this one.

If anyone followed the trade and has comments or suggestions I would greatly appreciate to hear them!

There is never anything wrong with exiting a trade with a small profit. As they say, nobody ever went broke trading from exiting with a profit.

Furthermore, it is an intelligent place to exit the trade in my opinion. I personally sold the OCT40 Calls for 5.50 this afternoon. TRN appears to be forming a beautiful hanging man candle. That coupled with outside the BB on the daily is enough to make me believe we will probably back up a bit early next week. Who knows though? This is the energizer market!!!!

Oh and dont forget its exp. Friday.....so lots of funny things always happening today!!

FM



Edited 1 time(s). Last edit at 09/19/2014 01:21PM by fireman1984.