Here's the deal. I thought I should buy into CHRS back on Monday, which I did. And because it didn't give me that profit I was looking for on day one, I figured I would hold onto it and follow the trailing stop loss strategy found at Swing Trade Stocks.com. It's a good strategy. The problem is that it basically dragged me through the mud, trudging and slowly drowning me. My original get out price was $4.55 since I got in at $4.70. And granted the stock hasn't dipped that low (it's only at $4.65) but it's been an entire trading week, and that's just not swing trading. That's bordering on buy and hold investing (bit of an exageration). What I should have done was sold on Monday. The stock went up the first day. I was excited. If I had put my sell order in that night, my trade would have executed at about $4.95 - it's opening price on Tuesday. This would have given me the $6 profit after trade commissions that I was looking for. But did I listen to my astrological chart, wherein I predicted I woul be profitable if I entered the trade on Monday? Nooooooooo. I had to get all analytical on myself, over think the situation and say "Well the chart didn't say that I would lose money if I stayed in longer than a day".
That'll teach me.
In any event - on with this week's pick.
I figure now would be a good a time as any to explain how I search for stocks. I use FinViz.com's stock screener. First I choose the Descriptive screen for price. I'm looking for anything under $5. Risky, I know but I'm only dealing with $500 right now so I can't really expect to turn a profit on $50 stocks. Then under the technical screens, I want the price to show below the 20 Day SMA, but above the 50 and 200 Day SMA. This should limit the stocks to a single page. I then take a closer look at these stocks by running free charts on stockcharts.com. The technical analysis tools I'm using at this site right now are Williams %R with a parameter of 3 instead of 14 (the default), as well as Volume, Full stochastics, a 10 and 200 Day SMA, and 30 Day EMA. If you're following this and want to do the same, let me know if I'm not being clear on the directions.
The stock this week is UCFC. The price is really low. It has sold off pretty strong for a couple of days, the Williams %R is well below -80, it's the first pull back into the TAZ after a breakaway (mid December) and should be ripe to move into an upwave. This is going to be a scalper, like the last two. I think I'm going to buy Monday morning and sell Monday night but we'll see how it performs before making that final decision.
I'm going to cheat on this game. I'm going to pretend that I actually made the righ decision to sell CHRS. otherwise I won't have the money to buy into this next stock and ride this wave. In the real world, obviously I wouldn't be able to do that. I'd have to wait until my sell order for CHRS places before putting in my buy order for UCFC, but since I'm only playing a game with virtual money - it's really not that bad. C'mon, I'm learning here, and isn't that more important?
The reason for the scalper position I'm taking on this one is mainly based on the Horary Reading I just did. Virgo rises, ruled by Mercury who is in Capricorn, peregrine and moving to combustion. His only beneficial aspect right now is Venus - ruler of my second house (money), and he's even separating from that. Notice here that Mercury also rules my 10th (career). And while he is accidentally strong by being angular in the 4th, he is greatly debilitated and has no essential dignity. Look at Mars, peregrine and conjunct the Ascendant. This does not bode well for the Querent (me). Nor does the Moon (my consignificator) have any real strength in Libra and moving to a square of a peregrine Sun. The malefic Moon and Saturn both in my second house afflict the matters of my second house.
The one saving grace to my money is that Saturn is a noble malefic being in his exaltation. Clearly, any long term investing in this stock spells disaster for my money.
But here's the good thing. Jupiter is the natural significator of money. He and Venus are in mutual reception of each other by rulership and just beginning to separate from an easy sextile aspect. Jupiter is in the house of my partner's money (8th house). Venus, my money, is in the house of my servants (6th). I'm trying to get my money to work for me by investing in my partner (UCFC). Jupiter is also the ruler of the 4th (resolutions). Now, my conclusion to this is that because these planets rule the houses that they're in by exaltation and are in mutual reception by rulership, the goodness that they promise will be supernaturally strong. Basically, the power that they have right now will not last but it will be a good thing.
It's confirmed by the fact that they are separating. Frawley might say that according to the stars, this slight separation is the stars way of saying that the plan is already set in motion. Indeed, I seem to have already made up my mind on this stock before consulting the stars.
Maybe I'm just deluding myself, but the last horary chart confirmed when to invest. It was my own ignorance that kept me in the stock. This current chart is also telling me to jump in and then jump right out. Hopefully I have the guts to do it. Here we go...
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