This week has been a grind as it seems the Summer Doldrums have hit early this year. I'm up for the week but I've only been able to squeeze out about 1/2 risk unit per day. It seems like its small but 1/2 risk units added up over the 5 days it's quite profitable. I've got two trades from Monday 6-2-2014 that I'd like to share, my first is a trade in BRCM which I found on my Gap up list. I rated BRCM as a Tier III gap that has the look and feel of a novice gap, but could be a great long after the initial day. I was a bit aggressive on my initial entry, a 5 minute low, which I had to sit through a little pain as I watch price finally roll over. After price went to profit for about .35 cents, for some reason I felt it was time to cash in on my play. Really, I think the restroom was calling, but this turned out to be a huge mistake as price continued much lower. I should have put my stop in and walked away, but these novice type gaps are played against the prevailing trend and are usually best played with a scalpers mentality. Oh well, a profitable example that should have been an OMG play!
My next play came near 10:30 am reversal time in ALL which I found on my 9:45 am green wide range bar scan. ALL's 15 minute bar put in a huge topping tail that, in the beginning, ALL would have not made my list, but I've learned that these topping tails clear out the sellers, so the next time price moves into the area, price will cut through these areas like butter because the sellers have sold already. I did not take the first buy setup, but the 2nd buy was at mS at reversal time and I felt the odds were much better at this point so I piled in at .57 cents. I sold 1/2 at a mid target of .72 cents hoping for an add and reduce play but soon my wide range profit bar was taken out by a huge red bar to the downside, thus I found myself covering the rest @ .68 cents. A nice little play on this first Monday in June...