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 from today, NTRI:
NTRI is interesting because it gapped up, but trended down the entire day. It may not be a good example, but I thought it was noteworthy because I have seen this pattern several times before. If you shorted NTRI when it broke below its 10:00 candle at $70.22 with a stop above it at $71.50, you would risk 128 cents. Waiting to cover until the end of the day would have given you about 662 cents for every share you were short, or over 5 times your risk.
This entry was posted
on Wednesday, October 25th, 2006 at 10:49 pm and is filed under A Dummy a Day.
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