Trades of the Day – Oct. 24, 2005

Here are my best and worst trades from today. The first was, as the Chairman would say, the quickest loss ever. I bought EFII at 1:34 just after it traded above the high of the 1:15 candle (see the arrow on the chart). Six minutes later it traded below that same candle and triggered my stop. So I walked away from that one with a quick 1R loss.

Sandisk was a setup that I rarely trade. (I may have to look for setups like this more often!) I don’t scan for situations like this so I only saw it b/c I happened to pull SNDK up early this morning because I was thinking that it might get some follow-through on it’s big move on Friday. Luckily I kept it on the screen even though it was down in this morning’s strong market. The 11:15 hammer really caught my attention because it was right around $55. I always like to watch those round numbers for support/resistance. Once it completed that doji 45 minutes later (see the arrow) I knew I had to try it as a long given how strong the market was. I entered as it rose above the high of the doji. SNDK was a 4.76R winner for me despite the fact that I took partial profits just before 3 PM when it and the market took a little dip.