Wednesday, November 08, 2006

Dummy Trade of the Day - Cephalon, Inc. (Public, NASDAQ:CEPH)

My strategy going into today's session was 100% low risk, after yesterday's failed break, and the elections, I wasn't sure what to expect.

CEPH was a dummy, breakout setup. With intraday breakouts, I always expect a retest of the breakout point, and that's basically what happened with CEPH. Once the retest was out of the way, the stock moved quickly up to the $78.00 area. I decided to let it go as it consolidated the rally because today's market action was a little unpredictable and I wanted to preserve my profit.

BIDU was a low risk entry following a big move in the morning and a lengthy consolidation. As soon as price was well above $98.00, I moved my stop up to that point and shortly thereafter, I was stopped out.

ADLR was a low risk entry off of a higher low at the convergence point of all of the MAs. My target was $8.00, however, the stock swooned mid-afternoon (thought I was going to get scratched) and that delayed the proceedings. I managed to make $0.30 on it and will likely be trading it again tomorrow, possibly on a break of $8.00 with a target of $8.75.


Anonymous said...


Great blog. Are you able to enter these trades from work or client? The reason I ask is, I assume you have to be totally focused on the screen when you enter and while you are in these trades.

TJ said...

Thanks for the compliment. I try not to focus on the trade once my stop is placed. I like to check back every 15 minutes for the change over from one candle to the next and possibly increase my stops. The BIDU trade required a little more attention because it had already had a big move over the last couple of days. But the ADLR trade is a range trade so it requires very little attention.

I think I read in one of Trader Mike's blog links that trading is supposed to be boring, so I'm trying to keep that in mind as I trade and work at the same time.