This was my first day in ConnorAlerts chatroom on Profitly. It was an awesome return to stock trading for me after a rather lengthy break. I did my pre-market research and was one of the first people in the chatroom before the market opened this morning. I looked through Connors watchlist and studied Connors comments about a promising looking stock (WPX) ripe for a classic Connor bounce play. Pulling up the chart, it was clear to me that this stock fit my criteria for a bounce play.
I love combining my own experience with the views of better traders like SuperTrades or Connor.
Anyway, I bought a small position in the stock minutes after the opening bell (average price $6.60) on a small gap down (many people in the chatroom were being stopped out). I have to admit it felt like a fairly risky buy, but i set a tight stop loss and went about my day (this took me many years to build this discipline trading with another Profitly guru who’s swing trades routinely plummet upon entry then go on to be HUGE winners!).
You can see todays candle stock with slightly higher than average volume on the far right of the chart above. I sold half my position for a +$0.65 per share gain in the middle of the day and the chart still looks to me like it might have alot more upside…..so letting the rest of my shares ride for a few days with a trailing stop loss. Hoping for a gap up in the morning but will watch it closely at the open!
I am very positive that if we can regain the 50dma and get to the high $7’s where the next resistance is then this could be a really nice short swing! RSI is turning up but still low and volume is ok so will need to watch this one closely for any weakness.
Anyway, what a fantastic return to trading – thanks to Connor at ConnorAlerts for bringing this really nice trade to my attention! So far my experience in the the Profitly chatroom reveals Connor to be a very calm and disciplined trader, with a hybrid style somewhere between a day trader (he does use intra-day candles) and a more relaxed swing trader. I like his video lessons alot and from the way he talks you can tell he loves trading and doesn’t actually care about the money – for him its all about finding cool stocks that have relatively large percentage gains.
Update 7th November 2015
I just wanted to update this post after I closed out my position on WPX that was alerted by Connor Bruggeman a week ago. As i mentioned above, I sold half my position when the stock moved 0.65 cents in a day or two. There was two reasons for this. First I am new to bounce plays and second THIS MILLIONAIRE TRADER taught me to take off half for profits whenever a nice move occurs. This way you protect your downside AND you can be more relaxed and make more money because your patience is solidified due to the early profit taking. So you can see from the daily chart that WPX did continue all week and I eventually sold my remaining half at a whopping $8.94 per share yesterday. Now, my average for those shares was $7.03 because I did add to my position as the stock started to move through the $7’s. A gain for the second half of the my position of $1.91 over the course of just a few days was a very nice trade!
So why did I sell ? Well local resistance in early October suggests that the stock is likely to encounter strong resistance at these current prices (close to $9 per share). Overall I am very happy with my first Connor alerted bounce play!