Wednesday, June 02, 2010

WH: Successful Bounce Trade

Because of my sector fetish, I look at quite a few stock charts.  Because of my fetish with what I affectionately call 'boneyard' stocks (stocks off the beaten path and require careful picking through!),  I have some names that I check on from time to time.

I've trade WH very successfully in the past.  I decided to take a look at it and saw that it had been decimated.  I picked up 2k shares @ $1.62.  I sold them two days later (yesterday) for $2.08.  I didn't think the surge sustainable.  I'm also mindful of Dan Fitzpatrick's great advice to consider your gain with your length of hold.

My plan was to play the bounce.  I was initially worried that the $1.85 level was not penetrated the day before.  But that hurdle was cleared with impunity.  I would consider re-entering on a pull back or some constructive consolidation.  I will resist the temptation to whine if it gaps and goes!

I DO need to work on articulating a better trade plan.  I generally do not list my planned trades here, and I try to limit crowing or grousing on good/bad trades except as there is a lesson worth sharing.  As part of my blogging was to help me solidify my thinking by writing, might that not work for my trading as well!? 

While I'm a very good researcher, and I think that I have a decent eye for charts, I'm reminded through my sub-par trading, that those skills still need some development and mastery.  Perhaps in my fear of embarrassing myself through poor picks and poor timing, I will vet my choices better--a bit like preparing steak for a guest v. cooking myself a hot dog!

I'll wrap my head around that idea more. 

Position disclosure:  no current position as of this post in WH.