QIHU 4 hour chart trade - feedback appreciated

I am posting a trade that I closed today. I would like any feedback from the experienced folks. Thanks in advance.

QIHU
4 hour chart
Entry: 1/28 @ 1040am PST (will be 140pm for east coasters)
Stock Price: $93.81
1 Mar 95 Call @$9.80

Exited this morning not sure about time exactly, but like 830am PST (1130am EST)
Exited at like $11.60

A small profit but I was Happy in Seattle.

Let's see, QIHU hit laminated support on 1/24 on 3 charts (Daily, 233, and 55), and the Weekly was already indicated higher. Can you say "BUTT UGLY OBVIOUS"? If this stock was in my "basket", I would have jumped this trade at 10:25am on 1/27 ($86.27) and rode it up to the TBB on the Daily (would have exited near end of today) for a very nice profit. I don't trade off of anything lower than the 55 unless I'm doing a quick QQQs play.

I may have to kick one of my short listed stocks to the curb and add QIHU

Seems obvious, but were you not down more than $3 at one point? That seems like it'd be nearly half your position. How and why did you know to hold?

My stop was going to be the opening price of the candle. Your question is one that I was hoping would be answered. The longer term charts were coming off support and moving nicely.

If I were to have traded QIHU using the charts S/O and I use...I would have bought on 1/27 around 14:10 and since you held overnight I did the same looking at the chart and would have exited @ 1:30 on 1/28.

Hind sight is so much easier than the real time!

I was looking for why you got into this trade? The sideways move would have kept me out. Looking at my 10 E chart I wouldn't have entered this trade at all when you did. Using my 10 E chart only I would have entered after the close of the candle on 1/30 at 10:00 and the open of the candle on 10:10. I would have exited on the 10 E chart around 13:20 when that red candle engulfed the white one next to it. My first warning of a turn in the trend would have been the inverted hammer candle on the 10 chart at 11:40. Looking at the 55 the gap down on the open of 1/29 sure must have caused you some concern.

Now the question for you to ask you is why did I trade this stock where it was, what chart did I use to enter and why did I stay? The only person who can answer this is you.



Edited 1 time(s). Last edit at 01/31/2014 10:41AM by Darcy2.