Since day trading is a lot about recognizing the patterns in charts, I have decided to post a chart every day that would have resulted in a profitable dummy trade. I will post these in the dummy-a-day category which you can simply click to review for practice. The chart will be displayed as it looked when the trade should have been executed, and when you move your mouse over the image, it will show how the trade would have resulted.
Here is one I missed today, BRCM:
A perceptive dummy trader would have noticed that BRCM formed a very nice “makeshift” 30-minute candle between 10:15 and 10:45. If you bought BRCM when it broke above this candle at $28.46 with a stop below it at $28.28, you would only risk 18 cents. Holding until the end of the day would have given you about 185 cents for every share you owned, or over 10 times your risk.
This entry was posted
on Monday, September 25th, 2006 at 4:38 pm and is filed under A Dummy a Day.
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