Intraday Trading – Testing the Waters
As the post title suggests, I decided it was time to “man up” today and actually try to day trade (ie. enter and exit a position within the same trading day).
But, as per Brian Lund’s advice: Don’t go big and then go home, my aim was to “start small and then scale up once you work out a methodology”.
Right now it’s 12:34pm, with less than half an hour to go and I’m still in the trade.
I chose to buy QIHU (Qihoo 360 Technology Co. on the NYSE) as this was a stock on the IBD50 that looked poised to break out of a cup and handle.
A quick interruption, as I just got stopped out of my position at 12:36pm. Here are the details:
- I had entered at 11:30am, buying 23 shares at a price of US$88.09 with a stop at US$86.85.
- I moved the stops up, based on resistance points I thought I saw on the 1m, 5m and 30m charts.
- From US$86.85, I moved the stops to US$87.46, US$87.93, US$88.20, US$88.41, US$89.09 and US$89.22 and finally to US$89.59.
- The fill price was $89.55, meaning Gross Profit on the trade was US$33.58 or C$37.17 (FX rate CAD/USD = 1.107). Subtracting a C$4.95 trading fee would leave a Net Profit of $32.22.
- The stock closed for the day at US$89.84 (per http://www.nasdaq.com/symbol/qihu/real-time), up US$5.10/6.02% on the day. The high of the day was US$90.48.