Wednesday, June 6, 2007

Wednesday Evening Wrap Up

The account closed green today, and I feel really good about that.

SWHC finally made its move, and it made me feel like "the man" to have a stock run after I was already fully positioned. Couple that SWHC move with a profitable daytrade in the Qs, and the day turned out to be a success.

MVIS held strong today and formed a bullish hammer, while SWN attempted to crash my party. SWN may need to be sold tomorrow. I'd like to note that the Bollinger Bands around HANS are closing in extremely tightly. I am of the opinion that the volatility squeeze will have to happen soon. I am considering adding to my HANS position as my belief remains the volatility will be to the upside.

The Nasdaq closed lower on average volume. I still see no reason to not buy this dip.


Broker A said...

go drink a "mean bean" with rum, then decide if you want to buy more hans.

Anonymous said...

I have a stupid question that is a little off the subject that maybe you can help me understand. You stated in your profile that 100K is the magic number for those with a day job to trade with. How did you get 100k to trade with if you have student loans and other debt? I too have debt and student loans but would love to have a 100k in an account to trade with. Did you go to the bank to get a loan? Any explanation would help, I am confused.

Marlyn Trades said...

I don't usually do this (pick stocks on someone else's site) but if you like HANS - JSDA formed a nifty BOB yesterday and I'm going to take some.

Woodshedder said...

Thanks Marlyn- I've been so busy after work that I haven't even been running the Bob screens. I need to get in the habit of running it daily if I want to try the system.

Anon- We sold a house and made about 80K on it. At the time, interest rates were so low that I convinced my wife to let me trade with most of the money and finance the next house. Plus, my Dad and my sister threw in about 20K when I first started trading. I bought them out last year. We've since sold another home, and rolled those profits into our current home, and so now my trading account is completely free and clear- plainly, its not "scared money."

traderdoc said...

Anon- I'm a relatively new investor myself. I started last December with about $10,000 that I managed to save despite having debt I could have paid off (financial advisors would have wanted me to pay the debt off first I'm sure).

It's now 6 months later, and thanks to some good day trades and my Dendreon play in March, I've turned that initial $10,000 into $40,000 now in my account. (Plus $4000 that I withdrew to fund my Roth). So what was better for me? Paying off $10,000 in debt for a 14% annualized return (interest savings), or invest it for a 600% annualized return? I will admit, the latter return is by no means guaranteed, but I think I'm better off.

I use Zecco so that commissions would not eat into my returns with such a low starting amount. I may switch to a better trading platform now that commissions are no longer such an impediment.

All I will say is just get in! Even if you don't have a lot of "play money", just get in. But be sure to do your homework before you trade so that you don't lose it all. Also, don't attempt to daytrade until you have at least $25k in your account to avoid the pattern day trader margin call. Trust me, I tried it and all I did was lose money trying to avoid "same day round trips."

Good luck!

Wood - great job lately, I've seen your account rise by $10k in a matter of a few weeks!

Anonymous said...

hey trader doc, did you use margin with your initial 10k? did you trade stock or options?

traderdoc said...

Anon- Yes I used margin. Actually I took a big risk and went almost all in on margin on my Dendreon trade. But then, I had done my homework (I'm a doctor), and I was almost sure that Provenge would get a thumbs-up from the FDA committee. Calculated risk. I knew that if the stock went the other way, I would have been done trading altogether, at least for a while. I did buy puts for insurance, however.

I've played with options once or twice, but prefer to stick with stocks at the moment.