Trading The Break


New member
Hello all, fairly new here but have been trading for more than quite some time now. Finally decided to make an account here since I'm seeing that everyone is very active on this website. Coming to share some of my trades, hoping that others can join in and we can all learn from one another.

That being said, yesterday (11/22) I took two quick scalps (trading options) on BIDU and LULU. The BIDU trade was a call and the LULU was a puts trade. The entries were on the breakouts of the previous days high/low with exits just being shortly after, without any long holding or anything of that nature. The BIDU trade was quite beautiful with an entry around 9:46 am (EST) as the stock broke the previous days high with a small pullback being given at the open, which made me more comfortable and confident about making the trade. The LULU entry was at around 10:28 I believe where I had to hold a little bit longer than I wanted to (about half an hour) to finally get some meat from the move. I am not using hard stop losses but whenever I am entering I have a stop in mind and keep an eye on the movement. LULU broke the previous days low with downside strength that wasn't there initially at amateur hour, when it quickly tested that level. Not the best scalp but ended up being a winning trade. Not a bad day.

With a good amount of momentum on your side and getting in at or around the break has been working very well. Hope to share some more trades on here when they come along.
This mornings entry was MU, entry off the candle close on the 5 minute at around 10:10 and exited a few minutes ago at around 11:38. This stock showed beautiful strength with a break of the previous days high, showing the ideal amount of momentum on the break as well. Stock could still keep rising but that doesn't matter to me. Got my money and ran. Overall happy today.
Entry today was on IBM puts. Opened higher than yesterday's close but still had the strong momentum going down. The exact entry was at 11:20 and exit was at 11:50. I should've held til 12:14 based on my usual exit signal but I decided to get out early for some reason. Sometimes I get trigger happy when exiting, which goes to show that even though I've refined and worked to perfect my entries, I still make drastic decisions exiting too late or too early. The positive is that this was a great entry and the better the entry, the better the success rate of having winning trades.

Good positive day with some extra money being pocketed before the big turkey day. Happy Thanksgiving Everyone!

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