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Bushi No Ichibun (2006) »

A dummy a day: MEMC Electronic Materials Inc. (WFR)

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 a short that I missed on Friday, WFR:


If you shorted WFR when it broke below its 11:30am candle at $37.38 with a stop above it at $37.56, you would only risk 18 cents. Waiting to cover until the end of the day would have given you about 64 cents for every share you were short, or over 3.5 times your risk.


This entry was posted on Sunday, October 1st, 2006 at 10:35 am and is filed under A Dummy a Day. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.