Decided to try a day trade after the NCP market opened aggressively down to 15.27 then moved up smartly to 15.38. Placed a buy order in for 1700 at 15.33 and amended it up for price and quantity.
An hour later it’s down to 15.31 and looked bad. But it picked up and spent most of the afternoon at around 15.39 (breakeven).
Suddenly at 2:45 it moved fast to peak at 15.48 then falling straight back to 15.39. Then it did it again! Why didn’t I place a sell in at 15.45?
I’ve noticed NCP trades in a 0.20 range. Lesson #1 if I buy at 0.10 above the low then I should sell at 0.20 above the low for day trades.
Lesson #2 keep a clear exit strategy when I buy.
What a day! I went for a late lunch at 2:00pm happy that NCP was happily above 15.70. I came back at 3:30pm to discover it at 15.48 (choke!). Nearly 2% off high is a clear sell to me. I am beating myself up for not taking 3% at 15.74. But that’s why I’m keeping this diary.
Hooboy! NCP opened at 15.50 and hit a high of 15.70, just short of my 3% target. So do I dare hold until it has a down day? Talking to some traders hanging around #ipchat, I’ll hold until it closes down. Hope I’m not being too greedy, small gains saw me make 35% ROI over the last 100 days of 2001.
Why? 2.5% fall from previous peak close of 15.675 on 28 Dec 01.
The stock went up then down to close at 15.209. Last trade was 15.22. I feel pretty foolish but I don’t try to pick tops or bottoms. There are three potential exit strategies: sell for +2.5% (15.66); or +3% (15.74); or sell after it closes down. Successful traders pick one.
Welcome to WealthEsteem — dedicated to the Psychology of the Deal.
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These are my musings on wealth creation, written during the quest for my second fortune. If my ideas work, great! See you in Monaco sipping Cosmopolitans. If they don’t, it’s a map of my folly. Hoist a cool drink to my memory and imbibe responsibly.
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