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Chart watch - TZOO
- Thread starter Chagi
- Start date
Quote from Chagi:
Well, I just woke up (was up late studying last night), and this isn't quite the result that I was expecting (this is only the second time that I've had a stock move on me like this). They sure did blow out earnings...
I suppose that some would argue to hold onto this trade, let my winners run, etc.; but I'm opting to close out this position here (at little over $29, original entry was a pretty suboptimal $20.85). Going to continue to monitor from there for any set-ups, but I imagine that this stock is going to be all over the place the next few days/weeks.
Chagi,
Great trade! I agree....it is always good to take profits. However....take a look at this chart. Just for reference.
When a stock runs up this fast....I would be careful....it can come down just as fast....or faster. I don't trade stocks anymore....don't know anything about TZOO....but it is an interesting chart.
VSTscalper
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Quote from VSTscalper:
Chagi,
Great trade! I agree....it is always good to take profits. However....take a look at this chart. Just for reference.
When a stock runs up this fast....I would be careful....it can come down just as fast....or faster. I don't trade stocks anymore....don't know anything about TZOO....but it is an interesting chart.
VSTscalper
I agree. I miss a fair number of trading opportunities because I'm highly reluctant to buy into a stock that has had a dramatic upwards move, because I'm not yet comfortable with the risk involved (good examples being BDCO, RAR.V, etc.). I prefer to look for what I consider to be high probability set-ups.
I suppose that I could say I missed out on some profits by selling where I did, but one of my trading rules is something along the lines of "book gains if gain is significantly faster/higher than expected". In this case TZOO had moved up something like 45% when I looked at it, so I was quite content to close my position. Would have handled it differently if it were a more gradual move.
Quote from Chagi:
I agree. I miss a fair number of trading opportunities because I'm highly reluctant to buy into a stock that has had a dramatic upwards move, because I'm not yet comfortable with the risk involved (good examples being BDCO, RAR.V, etc.). I prefer to look for what I consider to be high probability set-ups.
I suppose that I could say I missed out on some profits by selling where I did, but one of my trading rules is something along the lines of "book gains if gain is significantly faster/higher than expected". In this case TZOO had moved up something like 45% when I looked at it, so I was quite content to close my position. Would have handled it differently if it were a more gradual move.
Chagi,
I was just looking at an updated chart...."wicked" up thru that horizontal line I drew.
I don't like extremely long Candles or Bars. Usually when you see that happen....the next Candle or so....it pulls back hard. Not always....but more often than not.
I think you were smart to book your gains. As you can see....I am a Scalper....I would be doing the same as you.
If it breaks that line and prints....on the previous chart....it could fill the gap quickly. My position right now....would be to stay out of TZOO. I want to see a good Pullback first....before going long again....and I would not short. The big money plays many games with us small traders.
Glad to hear you follow your Rules.
VSTscalper
Quote from VSTscalper:
Chagi,
I was just looking at an updated chart...."wicked" up thru that horizontal line I drew.
I don't like extremely long Candles or Bars. Usually when you see that happen....the next Candle or so....it pulls back hard. Not always....but more often than not.
I think you were smart to book your gains. As you can see....I am a Scalper....I would be doing the same as you.
If it breaks that line and prints....on the previous chart....it could fill the gap quickly. My position right now....would be to stay out of TZOO. I want to see a good Pullback first....before going long again....and I would not short. The big money plays many games with us small traders.
Glad to hear you follow your Rules.
VSTscalper
I agree with what you are saying, I will monitor TZOO carefully for a pullback. I suspect that interest in the stock is going to increase somewhat, for both fundamental and technical reasons. Regarding the latter, low float and high volatility makes this an interesting stock for daytraders (though I think it would be somewhat difficult to move a very large number of shares without slippage).
About the rules bit, mine might seem quite simplistic compared to those of the more experienced traders on this forum, but I've made a number of dumb mistakes while learning how to trade. For example, there have been at least a couple of times where I was right about a stock (i.e. much more so than I had anticipated), yet gave up a large portion of profits because I got greedy. My opinion is that unless you are scaling in and out of a stock, it's certainly wise to book profits if it suddenly jumps 20-30%.
P.S. I agree that TZOO probably isn't a very wondeful choice for a stock to short, in terms of the risk involved.
TZOO was on the SHO list for quiet a while. With grandfathering, x clearing, etc., there are probably a mulitiple of the reported short position in the system. The SEC has said there are companies out there where the shorts exceed the float. That's where the firepower comes from.
I 'm hearing clearing firms are tightening up. I saw a post on silicon investor where a trader was bought in on a position for a huge loss. Up to this point in time, there were no buyins, because broker A didn't want B to buy him in on another position.
I have heard much banter, and although individual mm's are saying, screw it, I'll pay the fine, it's worth it, it won't be worth RICO. To sum up, the opportunity here is once in a lifetime stuff. I'd love to see some good technitions follow some of these squeezes. Remember, the SHO list is just a thumbnail in the world of corruption. Everything else was grandfathered. So, if you see a stock that has had a huge short interest for a long time, chances are there are millions of shares in the system. I'm very sorry I missed TZOO. But there will be more.
I 'm hearing clearing firms are tightening up. I saw a post on silicon investor where a trader was bought in on a position for a huge loss. Up to this point in time, there were no buyins, because broker A didn't want B to buy him in on another position.
I have heard much banter, and although individual mm's are saying, screw it, I'll pay the fine, it's worth it, it won't be worth RICO. To sum up, the opportunity here is once in a lifetime stuff. I'd love to see some good technitions follow some of these squeezes. Remember, the SHO list is just a thumbnail in the world of corruption. Everything else was grandfathered. So, if you see a stock that has had a huge short interest for a long time, chances are there are millions of shares in the system. I'm very sorry I missed TZOO. But there will be more.