Why I stayed out of $LULU

As I mentioned in my previous post markets gap ups are the the hardest to trade. It’s easier to trade gap downs with investor emotions going crazy and hence the opportunity or even flat to slight up or slight down markets  so we can play relative strong or weak names.

$LULU was one stock which was eyed by almost everyone in the trading world. Last time it gapped down it had a clean move to the upside.  I mentioned to my fellow trader’s on the desk in the morning to watch how the candles sets up initially before deciding to go long or short.  Most of them stayed out and saved themselves loss on trades and commissions.

I also tweeted this out intraday for people following me on twitter to stay out from it.  http://twitpic.com/9tslm1

Why I didn’t trade it

1. After the big gap down from yesterday’s afterhours. I wanted it go below it’s premkt lows for a short bias.

2. It had a steady uprun in premkt with no pivots making it difficult to understand where the risk is gonna be.

3. No follow thru on the upside or downside intraday.

The trades which I did take were both for scratch trades in $ANR. Tried to play it based on the market.

Name of the game is survival right now. Not taking too many trades, hence not raking up too much on commission and remaining on sideline for most of the time. Not being down right at the open is also helping out my cause, since I don’t have to force myself to put on trades to breakeven and make a comeback.

If you want to see real time how I navigate through these markets

Follow me on twitter https://twitter.com/#!/dchsn6

Facebook: https://www.facebook.com/Dchsn6

dchsn6

LEVERAGE and COMMISSION for my FELLOW Traders:

If you need leverage on your capital and are looking for 100%payout on your profits with competitive commission rates. Email me: dchsn6@gmail.com  and I can help you to join my group and get a group discount. Why pay more when you can pay less.

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