TF's Breakout Thread/Journal

Okay, so I'm going to give this journal thing a try. I think it might help me stay disciplined.

Please note that I am a rather new trader. I use the word "trader" as previously I didn't trade very actively, but starting doing so approx 6 months ago.

*******This thread is not meant to be educational in any way. I am not a pro, there are far better, more experienced traders on the HSM website that you could benefit from watching. I'm using this more of a tool to document my activity so I can stay focused, learn from mistakes, etc.*********

I started 2010 with an $8,000 account, it currently sits at $11,800. I have no goal that I am shooting for; meaning this is not an "$11,800k to $200k in 2 years" type of thread. I do not want to constrict myself to a timeframe or dollar amount because I feel that may cause me to make poor decisions. Basically I'm trying to just chug along and make as much as possible.

I guess I'm a swing trader. I like stocks that are in a defined uptrend, then I wait for a pull back and try to catch a ride on the next leg up. I may not always wait for a defined pullback if the stock is really surging. I may do a "day trade" here and there as well, a la ABIO at the end of last week.

I use a combo of moving averages (typically the 10sma and 30ema) to find stocks trending up, but pulling back. I also use some of the other more common indicators like RSI, MACD etc. I don't get overly technical, just try to play the swings, emotions.

I may have 1-3 trades going on at a time. I could be all in on certain trades if I keep adding to my position, but I am straying away from doing that as the account slowly grows. I do not have a margin account, I do not trade with unsettled funds.

I typically start with a stop loss around 7-10%. I may tighten to protect gains if the stock rises. There's no specific gain I'm looking for on each trade, it changes depending on the stock. If the stock rises 15-20% right away I like to sell half my position to protect gains.

I have funds settling tomorrow (3/31) and the full $11,800 will be at my disposal.

If you like stocks that are breaking out, save this website to your favorties. It's a simple, handy little website. It displays stocks that have broken out to new highs, updated through each trading day. Listed by volume. Doesn't mean that every stock on here is a "buy" but it's an excellent starting point for finding stocks surging on big volume.

http://www.topbreakoutstocks.com/

Okay, let's get to work on tomorrow. I have a few stocks that I'm looking at, I'm not sure if tomorrow will be the day I buy them but I have some I will be keeping a close eye on.

WHRT: I love this stock right now, I like the intra day swings...and there is steady up trend going on. Might look for a dip at tomorrow's open down to 3.80 range maybe. Seems to fluctuate early in the morning. Super low float.

JASO: This is riding the upgrade given to First Solar. Not sure how much more room this has to run but the volume is there so it could keep moving along.

TRID: pulled back today, I think it's meeting some resistance at $2. Pulled back 7% today 1.78. I like it, but I'd like it a lot better it if broke through resistance. Even still, can make 7% if it gets back to yesterdays close of 1.91, and I think it will get back up there again and test that $2 range.

CIGX: Monster run lately, met some resistance at $3, trading anywhere from 2.50 - 2.90 right now. If it breaks through $3, I believe it will run hard up to $4 and finally fill the gap that it seems destined to fill. Similar to TRID, you could just trade the range here under the resistance and make 10-15%. Needs to hold around the 2.50 area though or could fall hard.

GLG: subject of takeover talks, on a nice run and pulled back today 3%. Not sure if the volume is there on this one, need more DD.

LVS: always on the radar for obvious reasons.

CONN: I like this one, solid play right now, could keep going to the 10-11 range before any resistance.

I've never had a defined plan around that. I always felt that if I had a stop in place my account was protected, and at times I'd be all in. But I think going with smaller trades is more responsible. Not sure if it will be more profitable. But this is an area where I need to be more disciplined.

I'm going to commit to not invest more than half the account in any one security. I know, still sounds like a lot - 50%, but it's a big improvement over my previous plan.

I think I'll start with 1/3 in each trade, so that would be just under $4k each.

Watching ESPH. Down 16% to 1.44 after topping out today at 1.88. Little NASDAQ stock, has been on a surge since late January. Big selloff this afternoon, can't find a reason why. Will watch in the morning, if there's signs of strength I'll assume the sell off is just ananomalie and possibly start a position. Just looking for a quickie here, not getting married to this one.

Could just be that it was due for a sell off, has been smooth sailing for the past 2 months. Today's candle looks bearish though, ugly actually, so I'll need to be convinced early tomorrow or I'll have to pass.

http://www.hotstockmarket.com/forums...highlight=esph


DCTH: This thing is out of control. At 8.41 on 7 straight positive trading days. Was around 4.40 on Feb 1st. Worth keeping an eye on to see what the pull back looks like. Established a new 52 week high today (8.49)

Got the skinny on DCTH. They have a new therapy to shrink tumors in the liver. Phase III data on this is expected in April. Could be worth a play to take advantage of the hype, with a very tight stop in case the data is bad. Would like to see a little pull back first though.

YZC. Interesting chart on this one. Lots of gaps. The pull back in the dollar I think has helped the coal companies. Currently at 23.74.

spread too big on WHRT right now, need it to tighten a little for a good entry under $4.

okay tightening up alittle now, buy order for 1000 shares at 3.89, let's see what happens.

liking MPEL and LVS at these levels.

Starting balance: $11,806.95

Todays buys:

WHRT: filled at 3.89 for 1000 shares. (keepeing a loose mental stop here, Fidelity doesn't allow stops on OTC stocks, and the way this jumps .10 a trade sometimes it's probably better not to have one)

DCTH: 430 shares at 8.80 (decided not to wait for the pull back although it did pull back from 9.13 earlier today)

ESPH: my buy order triggered at 1.63 x 2500 shares.

Waited a little long on ESPH but wanted it to show some strength. Should have been a better entry but well below the recent high. Chased it a bit, something to learn from.

FSII. Running up nicely for about a year now, something to keep an eye. Semiconductor company with what appears to be a lot of upside.

Well then, pretty ugly start to this thread. Down about 8% so far but still holding positions, unforeseen drop in DCTH hurts right now but I'm willing to wait it out.

Getting crushed on ESPH. Away from my computer for a while and came back to a monster shakeout. Fidelity won't let me enter stops on OTC stocks, I guess that's the risk I take. DCTH coming back around a little today.

need to sell ESPH if it shows any sign of strength, what a bloodbath.

Sold DCTH for small loss. (-170.77). looking weak and a bit scary so I got out of it. can't seem to break 8.50

Balance: $11,636.18

Had to make some really tough decisions today on ESPH and WHRT. Sold them both today as my poistions were just getting worse, especially ESPH.

Two terrible trades, looking back at my entry points - they were awful. chasing something that wasn't there. Oh well, learn from it hopefully. Just gave back all the gains that I had grinded out over the last few weeks. I'm angry at myself but very happy to be out of those trades, I let them go on longer than I should have and it looked like things would have gotten worse if I held.

Balance is now at $9,739.59. Back to the drawing board.

I could use a drink.