Wednesday, October 18, 2006

Dummy Trade of the Day - Canadian National Railway (USA) (Public, NYSE:CNI)

I ran a gapper scan shortly after 10:00 EST. After reviewing all of the charts from the scan, I decided that CNI had the best potential based on volume and narrow consolidation of the gap up. I took a low risk entry following a NR bar which had just carved out a higher low. My target was the 50% Fibonacci extension around $45.50. I knew that there was resistance at $45.00, but I was hoping that we could take it out. I was wrong, I took 50 % profit just below $45.00 and was stopped out on the balance. CNI had a nice, orderly pullback to the rising 20 period MA so I was able to take a second low risk entry into the close. As soon as price tagged $45.00, I booked my profit.

2 comments:

Gav said...

Hi Jamie
Glad to see another dummy trader.
I found your dummy trades started since early October. Is it because you just started trading dummy recently? or there some posts that are not tagged?

keep up the good work.

Gav

Jamie said...

Hi Gav,

Thanks, I've just recently started incorporating the dummy trades as part of my daily routine. Before now, I used to trade the dummy entries on a more infrequent basis. And yes, I've just started labelling them, but I plan to eventually go back through the archives and tag them so that I can create a dummy catgegory on the side panel.