Monday, January 22, 2007

MVIS Uptrend Still Intact


Despite the bearish index action, I'm still holding MVIS. I'm finding some small comfort in the uptrend line holding and $3.50 becoming support. I didn't include the 20DMA on the chart, but MVIS has been holding just above it. This is typically where I like to buy stocks. In fact, had I not jumped the gun and bought too much too early, I would be buying here. I would really like to see some trading above $3.75 tomorrow while avoiding making a lower low. I will feel better about this position then.


In order to not suffer some serious losses on MVIS should it completely breakdown, I am going to have to do some soul-searching about how much more of a drawdown I can allow, reset my stop, and not look back if it is hit.

12 comments:

mc said...

We are on the same page my friend...trading while working. The only difference is that I have a automated trading program to execute intra-day trades. But I trade position trades my self.

Trade well!!!

Woodshedder said...

I am going to upgrade my platform probably to Tradestation so that I can do some automated trading. What platform are you using?

Jack Landers said...

I, too am trading while working. I don't know where exactly you bought MVIS but it sounds to me like you have a 'pet.' I've only lost money on one trade in the last year and it was because I let SSD become a pet. Ain't no room for pets in a swing trader's portfolio. One of the toughest lessons for me has been getting it through my thick skull that unless one is a long-term buy-and-holder, a good company is often a bad stock and a bad company is often is good stock. Forget the story. The story is the past. Look at the chart and decide what you think that capital could probably be doing if it wasn't tied up in MVIS. This looks to me like a stock that one can make money on with the right entry point (aren't they all?) but if your judgement regarding it has been clouded then it's time to move on.

Woodshedder said...

Jack, yes, you are right. I have exceeded what I would normally allow for percentage loss per trade. However, I have a stop in place that will get me out before it gets too nasty. I agree about pets. As I said, it usually only happens once a year...I guess I forgot how it felt to have one...Now I remember why I don't marry em! What strategies are you using to get such a steller win/loss ratio?

Jack Landers said...

Woodshedder,

I'm more or less following Nicholas Darvas' 'techno-fundamentalist' method. I'm usually only on 2 stocks at a time and usually end up holding for 2-4 weeks. The lack of diversification is forced by the fact that I'm working with a pretty small hunk of capital but the effect is that I only end up buying the ones I'm really confident in. If I had $500k and was in a dozen different positions at a time then I would be wrong much more often. After all, how many really great ideas for a buy does one have in a given week? Much of 2006 was a 'gimme' because I bought Porsche in December of 2005 and put almost everything into it all the way through late October since the darn thing just wouldn't stop going up.

In short, I put all my eggs in one basket and watch that basket very closely. I'm sure I'll manage a losing streak eventually. My approach may not work so well when I'm dealing with more capital. I have my own blog documenting my activity at traderstory.blogspot.com.

Woodshedder said...

Kewl, I'll check it out.

I've been hit by too many secondaries and bad news to commit more than 1/5 on any position. Look forward to reading your blog.

mc said...

I use trade station also but wrote my automated trading using IB API calls.

IIO said...

I've also been trading while working full time. Been doing so for about six years. Needless to say, I still have (need) my full time job.

I have MVIS too (from 3.09). I hate to hold a stock with such poor fundamentals, but I like the chart alot.

I also bought AOB along time ago when it was about five-ish. I loved that stock! Unfortunately I sold way to soon.

Woodshedder said...

mc- I've considered IB, but am not knowledgeable with API. I'll have to check out their website. I guess you are happy with them? Is it difficult to program?

mc said...

Their service is okay but not the best out there.

Programming is my line of work so writing my automated trading platform was a fun project.

Woodshedder said...

Would someone with no programming experience be able to learn it within a few months?

mc said...

I would say yes but why waste your time doing when you can hire some body to do it for you...spend your time doing something else.