I am going to discuss about 4 stocks I traded on Monday. LinkedIn stock was the only one that I managed to show profits. I got the rest of my trades on TEAR, TSN and WCG stocks all wrong and lost my predetermined amount of money. Fortunately the uptrend of LinkedIn that I predicted based on the intraday chart won some of that back.
Trading LinkedIn stock
LinkedIn 30min stock chart: Trading at the monthly R2 pivot point
LinkedIn stock was trading above the quarterly R2 pivot point and approaching the monthly R2 pivot point for the second time, when I first accessed its charts. More bullish signals have been the gap up that was printed last week and the breakout that took place after confirming the quarterly R1 support level. Could the stock be overbought and all that buying power exhausted on Friday? Sure it could. But for the time being, the stock price had already been rejected twice at the daily S1 pivot point, so my mind was set on taking a long position. At least up to the middle pivot point. I entered at around $231.
My stop loss was set right below the most recent low ($230), which was close to the S1 pivot point level as well. If that failed, prices would probably head towards S2 pivot. A couple of minutes later though buyers took control of the market and quickly pushed the stock price up, close to the next pivot point ($234). At that time I moved my stop loss half a dollar above my entry point, securing some profit and waiting for the short-term breakout ($233.50).
At 14:00 the breakout took place and I meant to sell 70% of my shares at the pivot point ($234). Regrettably I didn’t move my target a few cents down, rather than waiting for LinkedIn stock to touch 234.20. The result was the profit target to be missed and have the trailing stop order stop me out for half of that.
Day trading WCG stock
WCG stock has been in an uptrend since June and recently tested the resistance level of the quarterly R1 pivot point. By the time WCG charts loaded at my eSignal platform, the stock was retracing back to the middle daily pivot point. It was time for another long trade, only this time it didn’t last that much. 5 minutes later the brief breakdown was enough to hit my stop loss.
Although the price made an attempt for the R1, it first fell down to the previous day’s S1 pivot point. That would have doubled my risk for this trade.
Trading TEAR stock
Day trading the TEAR stock was pretty much uneventful. I went long during the first hour of trading and I had to wait for 3 hours before my prediction was proven wrong. That inactivity period should have made me exit my position a lot earlier.
Trading TSN stock
TSN stock gained about 20% the last 5 days. Day trading this stock after the open’s gap up could be tricky. I decided to go long when a very promising bullish pattern appeared at the 1-minute chart. The trending channel was easily spotted and I hoped for a quick swing to the upper limit. The market had a different opinion and the price never retested the previous high, and eventually broke below the channel’s bottom. I didn’t move my stop loss, which was hit an hour later.