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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 WSP Holdings (NYSE: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 (Tuesday) 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.
Disclosure: No current position as of this post in WH.