I've been thinking for a while that this blog might be more interesting and easier to follow (and write) if I don't show all my trades but instead focus on my favourite one for the day. A summary of profit and loss might go nicely with this too so in 2010, if not before, the blog will be looking different.
Partly inspired by Electronic Local, one of my links, I'm contemplating doing a little day trading in the Spi. I'll see how it goes. My aim is that this will give me quite a bit of fun and an extra income stream. I also want some modest day trading activity to satisfy the part of me that likes to be busy, allowing me to be relaxed and clear about the stock trading based on daily charts.
My trade of the day is to buy Lihir Gold at 318. I bought the first reversal attempt last week and was forced to stop out on Friday. However, I like the marginal new low after a congestion especially when the overall pattern of higher highs and higher lows is still holding.
In early October and early November there were good rallies after a congestion. On both of those occasions you didn't need to buy on the reversal because a 1-2-3 buy signal was formed. These last two rallies took the stock to new highs but I don't necessarily expect that this time. I do think there can be a quick move to 340 or a little higher if it's a straight reversal. If it forms a slower buy signal then I'll probably hold a little longer ie wait it out through a correction.
If the stock goes to 310 then it's on red alert to stop out. In practise, I'd probably allow it another two or three cents leeway.
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