FTWR Follow Up

Years ago I would never have traded a stock below $10, then that universe changed and I had to include $5 stocks. However, back in 2007 I noticed 3C had a knack for picking moves on the Cats and Dogs, especially on the daily chart (this is before  I really understood 3C, or better said, the market). So in 2007, 3C was gong nuts over a stock, it was BPZ-a sort of C&D trade at the time-under $5.00.

Any way, BPZ went on to make Trade-Guld readers about 400%, that's also about the same time I learned how useful my Trend Channel was, I could have taken profits at 50% or 100%, but I caught almost the whole 400% ride when I stopped making arbitrary decisions about profit taking and left it to a non-emotonal indicator.

So now I have a better understanding of the Cats and Dogs, when they appear, when it's better to hold them and when it's best to take profits quickly. You have to be comfortable with risky, speculative trades, but the returns can be incredible in a day or two.

So lets take a look at a recent C&D trade idea-FTWR from Tuesday, June 21

The recent price action since the idea may not look like much, but that's an 18% gain!

 Here's a tighter intraday stop, although I wouldn't choose $1.20-maybe $1.21-$1.22 or so.

If you want to give it a bit more room, $1.16 or so.

You could also go with the daily stop, although that wouldn't be my first choice, it could work with partial profits around this area and let the rest run on the daily @ $1.01-that's a lot to give up though and this isn't the trending environment.