Hi again all,
I've been having a go at trading AMEC shares today, what a ride, not sure if it will be like this when the markets get back to some semblance of normality but it was fun if a little nerve racking for the newly aniciated.
I managed to make a small profit a lot of luck I think. Would someone like to comment on what I did today as it would really help my understanding and maybe help other newbies as well.
Here Goes
1) I've been watching AMEC for a while now and yesterday at the close I noticed that the day ended with what I thought was a double bottom (See my attempt at a CHART).
I have been using 6 month hourlies, 5 day hourlies, 2 day 15 mins, 1 day mins and intradays 1 mins with a check on ADFNs tickscope but am just showing this chart for simplicity.
The double bottom was tenuous though!!
2) This morning after checking what happened with the other international markets and oil I thought the market would open on the up and I think Oil was looking better so AMEC should be a possible play (along with the double bottom of course).
3) I watched the open and to my horror saw the massive swing to the up and I thought I'd missed the boat but after quickly calming down realised I was seeing what I think was a head and shoulders forming. I waited to confirm it and then bought at 400.74 as the second shoulder came to an end (I should have bought at 390)
Volume was increasing the stochastics were rising above 20 and the 30 EMA and 10 SMA were well separated and rising having crossed earlier.
4)I followed the price with a 6p stop loss, couldn't believe it when price got to 430 but started to notice volume dropping off after price dipped below my lower trend line so was unsure whether to sell. stuck to my rules and sold out with a profit.
5) I'm now wondering if I should have stayed and if you look at the chart I'm sure a cup and spoon is forming ready for tomorrow or is it a double top.
Any one care to comment on how I approached the trade and how best to deal with tomorrow. I'm thinking I should just take the profit and move on?
Thanks in advance.
I've been having a go at trading AMEC shares today, what a ride, not sure if it will be like this when the markets get back to some semblance of normality but it was fun if a little nerve racking for the newly aniciated.
I managed to make a small profit a lot of luck I think. Would someone like to comment on what I did today as it would really help my understanding and maybe help other newbies as well.
Here Goes
1) I've been watching AMEC for a while now and yesterday at the close I noticed that the day ended with what I thought was a double bottom (See my attempt at a CHART).
I have been using 6 month hourlies, 5 day hourlies, 2 day 15 mins, 1 day mins and intradays 1 mins with a check on ADFNs tickscope but am just showing this chart for simplicity.
The double bottom was tenuous though!!
2) This morning after checking what happened with the other international markets and oil I thought the market would open on the up and I think Oil was looking better so AMEC should be a possible play (along with the double bottom of course).
3) I watched the open and to my horror saw the massive swing to the up and I thought I'd missed the boat but after quickly calming down realised I was seeing what I think was a head and shoulders forming. I waited to confirm it and then bought at 400.74 as the second shoulder came to an end (I should have bought at 390)
Volume was increasing the stochastics were rising above 20 and the 30 EMA and 10 SMA were well separated and rising having crossed earlier.
4)I followed the price with a 6p stop loss, couldn't believe it when price got to 430 but started to notice volume dropping off after price dipped below my lower trend line so was unsure whether to sell. stuck to my rules and sold out with a profit.
5) I'm now wondering if I should have stayed and if you look at the chart I'm sure a cup and spoon is forming ready for tomorrow or is it a double top.
Any one care to comment on how I approached the trade and how best to deal with tomorrow. I'm thinking I should just take the profit and move on?
Thanks in advance.
