This will be one of my last free blog post. In September, most of these blog posts will be behind a paywall. If you already bought the streaming training manuals, you are in. Price is going up in September. Tweets such as these where AVEO was around $2.90 where I shorted it will be behind it. Most of my tweets will NOT be behind a paywall.
Let's get down to the most easiest, and mis-understood trade in the market. Today when $BLUE was at $129.50, I but a buy stop limit at $130.31.
Oops, wrong post. I don't know how to delete that out so look at the second block.
If you take a look a the intraday $BLUE chart, it had heavy, heavy selling at $130.00. The high of the day was $130.25. I put a stop limit as to when it breaks the days high, to fill at a certain price. It's called a stop market, which filled at $130.25. $BLUE ran up to $133.25ish in a good market tape and I pocked the easy $2 at $132 and change.
Why does this work, almost all the time? I don't use charts, but when something breaks a HOD after lunch it usually continues into the afternoon. I just set the buy/stop and forget it because it's a great setup and chart traders trade off it. I let them make me the easy money.