Buy 1940 NCP @ 15.35

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.

Buy 1700 NCP @ 15.28

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.

Psychology of the Deal

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