GIVN IS A POTENTIAL BUY

I am looking at GIVN again for a long-term trade. I see it being in a buying territory around $16.00. Remember to place a stop loss order and do so below $14.00. Click on this chart to see what I am talking about.

HEAT TRADE: OPENED 7.7.2010 @ $5.50

I saw a great trading opportunity on a stock that I have been following for a long period of time. HEAT has entered a buying zone for me based upon the chart seen here. (click on the chart to see it and read the text associated with it.) I bought 2000 shares at $5.50 and am expecting a higher move. That will also depend upon the overall market too. If the S&P 500 goes down, this will most like follow suit.



Here is now a daily chart. Notice how the weekly chart above and the daily chart to the right here have the stochastic indicator in the oversold (below the 20 line) area. When both are in the same area, that should mean there is a potential for this to move back upwards soon.



UPDATE: 7.20.2010 On a daily chart, HEAT has been behaving as it should be which means upward. This upward movement was stoked by the weekly chart and the daily chart both being in the oversold territory on stochastics.

However, when you look at the weekly chart, you can see that trading volume is slowing down while price trickles higher. What a trader wants to see is volume picking up with volume climbing higher.

Plan on staying in on this trade and as of today, it is still 13% in profit.


UPDATE: 8/5/2010
So far HEAT has garnered a 20% gain for me and I see a short-term top in place so I am going to sell an August $5 covered call at $1.65.


8/17/2010
Here is the chart and why I saw the short-term top on the stock. As noted above, I sold an in-the-money August $5.00 call for $1.65. Today, I bought the contract back to close the position for $0.90. That is equivalent to $0.75 per share. This will knock my cost basis down to $4.75.

SPXU PROFITABLE TRADE

So here is a trade that followed the trading plan that I have created. I have traded the symbol SPXU that is three times the inverse of the S&P 500. That means that when the S&P 500 moves 1%, the SPXU moves 3% in the opposite direction.

I was looking at the charts on the S&P 500 and expected it to make a downturn. So, if the S&P 500 was going to go down, the SPXU was going to go up three fold. (click on the chart to see the S&P 500 daily chart).


The chart of the SPXU is next. Since the market was probably going to go down, the SPXU was going to go up three-fold. On June 22, 2010, I entered a trade at $31.65 by buying SPXU. The amazing part is that nine trading days later, the trade was exited at $38.77 for a 24.5% profit. I'll take that any day.

This is just one of the three different ways that a stock or ETF can be traded. In a second way, you can use options to keep a trade for a longer period of time, or you can always use options as insurance in the third way of trading. Don't be afraid of the word options. Options are just a way of insuring major losses in stock trading. It can be a learned behavior.