EBAY Day Trade 2% in 9 Minutes
Added Volatility is a great thing for us daytraders, I just closed another daytrade which this time was with EBAY (EBAY), and think it can better help to understand how to utilize certain technical indicators to make quick cash. In this case my streamer wasn’t working correctly, and I actually made the whole trade just off of my charting input which is actually a first for me in my young trading career, cool! For this trade I bought my original block at $31.12, and sold half at $31.69, and half at $31.57, yielding about 1.9% for the few minutes of work.
The BUY
You can see to the left is the screenshot I took when I bought my original shares (click to enlarge, then click again to zoom). What you really want to take note of in the first shot is our major indicators, the MACD and Stochastics, as well as the price of the stock. First the price of the stock, we can see it is basically at $31, after big fast falls, the next whole dollar can serve as support which in this case it did. The stock had already traded through the 50 DMA (which is not seen here). You next can see the boxed MACD trend, which is at this point below -0.2, for EBAY this means it is very oversold short term. Lastly, the third white box is our Stochastics, which under 20 tells us as well the stock is short term oversold. So, it was at this point in time I bought my position KNOWING I had great odds for a quick move back to the upside.
The SELL
Now we can see that our $31 support held up, and the stock had taken a great quick rebound run (click to enlarge, click again to zoom). Look at the MACD and you can see that it is now uptrending which shows the abundance of buying, and the Stochastics are nearing the 80 level. I was selling in this area because my target return for the stock was 1-2%, and I had pretty close to 2.
It is important to note though that I could have HELD here with still pretty decent odds in my favor. Why? Because our MACD was still uptrending, and the Stochastics were not signaling overbought. But, in my pregame books the mission was accomplished, and I could walk away happy. This shows DISCIPLINE regardless of the situation, which as a young trader I am constantly working to perfect still.
Since this sell, the stock has continued to make a move to the upside, and is now trading above $32.
Discuss this post in the StockTradingToGo Forum.
Subscribe To StockTradingToGo.com
Comments on "EBAY Day Trade 2% in 9 Minutes" are closed.