I've been spending more time with my options trading vs equity trading because of the ease and huge advantages that option trading provides. One advantage is that you know ahead of time what the odds are before you place your options trade. With equities you have to rely on your method to give you an edge, but still at times, I feel when you place your equity day trade your odds at best are 50-50%. I mention this because I really only took three equity trades this week, 1 worked out nicely, the other two were scratch trades and closed at breakevens. I also had a really nice Forex trade that I'll also show you as well. In future post, I'm going to start sharing my options trades as well, attempting to pin-point when I take the trades using my charts, just an FYI...
My nice equity winner this week was in XOM from Tuesday. I had XOM on my list because it was gaping up before the open and looked nicely bullish. Well, XOM sold off hard into its prior day's close before bouncing. As expected price rolled over again to test the PDC again and buyers showed up once more. I liked this support area, but I thought to wait and see if price would retest the lows again and sure enough, price came down again and then triggered a 2nd buy. I was in just above 84.86 with my stop at the prior low of 84.76. I believe price came down to 84.75 before recovering and finally taking off to the upside. Price just rocketed above 85.10 where I was managing my play bar by bar at this point on the 1 minute chart. You can see my exit on this play, pretty nice!
XOM 06092015
My Forex trade was in NZD/USD which was my pick for the week having a short bias. Price had hit my resistance area once and had sold off on Monday, so I thought I would start placing my orders at the prior highs, thinking that price would probably retest this area. Well, overnight, there was a spike up triggering two of my four short lots. Price sold off again nicely where I was up about 20 pips in profit. With my take profit targets set at 120 pips below I left on my trade again overnight. by the next day, price had recovered but I was still up on my trade. Again I left the trade on overnight and woke up being stopped out on both of my lots by 40 pips, and two new positions short, my last two lots. At this point I was second guessing my trade as NZD/USD looked really bullish on the hourly chart. But "the trend is you friend" as many say so I left the trade alone for the morning. Here is the photo of my first two entries...
NZDUSD 06092015
Finally in the afternoon I was rewarded for my patience as price sold off in a flurry hitting my 120 pip take profit targets netting my play a positive 80 pip profits on two of my lots 🙂
NZDUSD 06102015
