Trades May 1

I decided to start logging my trades from 1st of May.

I am not going to cherry pick my trades and only show my winning trades but will show each trade with an explanation of why I the took trade and my thought process when exiting trade.

Friday 1st of May started out poorly with my Broker (Scottrade)
trading platform (Scottrade Elite) not working correctly. The Charts would not open correctly the first 1/2 hour of trading which is the easiest time to make money for most day traders.


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Trade #1
 Sold short LLY after stock spiked on rumor of buyout (heard on Benzinga News). The chart below is a 5 minute chart.

LLY showed divergence on C-RSI (stock price higher high but C-RSI lower high) white arrow and trend line on C-RSI.

Sold short at 73.15 on DOJI candle (red arrow on chart). Trade was made on anticipation that price would revert to price before rumor was made know to public around 72.75-72.85.

Covered short two candles later when price broke above the previous candle nullifying the down move . (White arrow)

I exited using buy to cover market order and was filled below the break  point of previous candle @ 73.09 so I got a good fill leaving me with a 6 cent profit, but well off target zone of 72.85 (where I had placed a buy to cover limit order)

Over all I am happy that I exited this trade at the time I did. I followed the trading plan I have. What I am not happy with is my entry which should have been the candle after the DOJI candle at the break below the low of the DOJI candle @ 73.02.
This of coarse would have meant that I would have lost money on trade but it still was the correct entry.



Profit after commissions ~$2



Trade # 2

YUM fired my On the Trade Ideas Reversal scanner in the last hour of trading and after firing several times I decided to take a short position.

The Trade Ideas Reversal Scanner scans the market for oversold and overbought issues. The scanner was developed by Ross Cameron AKA The Daytrade Warrior.

Chart below is 5 minute chart. Again the C-RSI was diverging from price, YUM was making higher high's will C-RSI was making lower high's. This is one of my go to plays but I entered without getting a buy signal. I never should have entered this trade. The  sell short signal would have been if a candle broke the low of the previous candle. I sold short @ 91.51without getting a clean signal. It didn't take long to realize that this trade was not going to go my way and I exited trade with a small loss by covering at 91.695 (market order Buy to cover)

Loss after commission $70.00