On a slow day when stocks were barely moving, we sought to ‘force’ a trade yesterday by shorting BIDU. The opportunity came during an instructional session online that was open to all Rick’s Picks subscribers, and the stock we used was suggested by one of the attendees. The trade could have produced a gain of as much $552, assuming 400 shares were shorted at 192.60, stop 192.91, as instructed. In practice, those who did the trade would more likely have come away with a profit of between $237 and $452. The higher figure assumes half the position was covered at p2=191.67, and the remaining half on the closing bell. My initial guidance was simple enough for any trader to have followed: short a retracement rally to 192.60, stop 192.91, and use 191.67 as a minimum downside target. The key price points, and actions taken at each, are shown in the accompanying chart. After we were hypothetically aboard, BIDU screwed the pooch for nearly two hours before finally diving to our target. And although the stock feinted above the price where we’d initiated the trade, it didn’t go high enough to trigger the stop at 192.91 that I’d initially advised.
The purpose of the session was to demonstrate that even on the most boring days, there is money to be made day trading. If you would like to learn more about the Hidden Pivot Method that we used to initiate the actions detailed above, click here. For a free two-week trial subscription to Rick’s Picks that will give you access not only to daily trading ‘touts’, bulletins, updates and impromptu trading sessions like the above during market hours, as well as to a 24/7 chat room that draws veteran traders from around the world, click here.