Today FEED had a HOD @ $6.24 and a LOD @ $5.00 (that's over a $1,000 swing)... and yet I held through the good, the bad, and the ugly... however this morning before I left for work I put an auto cover in @ $5.36 "just in case..." (JUST IN CASE WHAT NOOB?! YOU DECIDED YOU DIDN'T WANT TO MAKE MORE MONEY!?!? NOOB!!!)... like the GOTS chatroom goddess has said (Laura) and I've written about... tuition is high in this game... even when you're making hay!
Yes when I got to work, I fired up my TOS software only to find my "auto" cover was executed!!! NOOO! FEED was sitting at it's, then, LOD of $5.32. FEED on intraday charts likes to swing up and down, up and down... extreme in some cases.
My point in mentioning my "brave" disposition on this trade is because I want to share something that I finally discovered for myself yesterday ("lighter" PLEASE if you read this... you're the fist person I thought of when I saw this because we've had several chats about charts, tell me to hold back on the peace pipe or if I've actually got something!) and I hope it benefits other traders out there too.
I know my chart analysis isn't revolutionary (for me it is though) nor am I claiming it to be as such... but I have to say, it's the reason I made $300 today... and "coulda" made $630! And that "woulda" been covering at $5.10!! Damn friggin auto cover (I've NEVER even used one of those before!!! Why today Noob!? Meh... suck it up princess... there will be others!
I digress...
First take a look at this chart below... it represents FEED on a 2d/5m chart (the past two days) -
You see the major swings... when you take a short position where I did, it can really distort your perception of what's going using this kind of chart... Muddy method of course taught me, via the GOTS blog, never to use 1d/1m charts because there is WAY too much "noise"... I get it! Thanks Muddy! HA!
If only we could be born and know everything right from the moment we first open our newborn eyes... would make life SO much easier... but in the same vein, a lot less interesting... sorry I digress again...
Now, look at this chart of FEED. It's a 30d/30m chart... look at that trend... VERY bearish! Easy to read... parallel 10/60 SMA lines... talk about an ATM... wow!
See where I'm going here? Less anxiety then when when I'm watching a 1d/1m chart! I can see the overall picture of what is going on with the stock I'm playing... I have a lot more confidence with where it's going... and I really think I can predict when to get out (not to the penny, but in the general area, just to clarify). "lighter" ring a bell? RDN comes to mind! =D
The last thing I did with my analysis was some very simple math to see what the average dollar amount FEED dropped over the previous 5 days was. My math concluded an average drop of $.40 per day. Today FEED dropped $.60 from it's open... see where I'm going...
As the "Godfather" aka Muddy and "Chatroom Goddess" aka Laura say... don't worry about the news it so easy to get caught up in all their BS... just keep it simple and find the predictable money... just don't spend it all on shoes!
Last note... FEED only came on my radar a couple days ago when a TIMAlert was mailed out when Tim went long on news, which I didn't play (but thanks Tim for the stock). Afterwards I did my DD on it... and here I am $300 richer... and a bad bruise on my head from banging it on my desk after seeing FEED hit $5.00 at close! Grrrrr!
2 comments:
Love the 30 min charts! That looks great to use for multi-day holds. Thanks for pointing those out to me in chat!
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