Trades today

Today I posted that I liked an entry in ONT on the pullback, and subsequent signs of a bounce from support. I took an entry on ONT today at $2.65 with 1/3 of a normal swing trade position. The chart analysis of ONT has good support at the 2.55 to 2.60 range. And today I observed a good bit of volume working on keeping the price from falling below that level. I wanted to get my toes wet at the bottom and took the entry at $2.65.

The reason for the 1/3 is money management. I want to get a bite of the stock at the cheap price but I don't want to risk a whole 10% swing trade position just yet. So I scale into the trade. The more the trade works in my favor the more I add until I have the entire 10% of my trading capital in the trade. By scaling into the position the risk to my total capital is less as I wait for further signs of buying pressure before adding more. This way if I am in only with 1/3 and the stock takes a dive for some unknown reason before more buying comes in then my risk is limited because a stop loss on only 1/3 of a 10% swing trade is minimal.

My stop loss for ONT is a 10 cent window from the break point I suggested to buy in at. Stop loss is $2.54.

Will advise on the next level to add to this trade as the market makes its next move.

Late in the day I took an entry on JSDA @ $17.85 (1/2 position). Remember to always check the watch list items in the right side column of this web site to see what the recommended entry points are for the stocks on the watch list. The trading on JSDA was healthy most of the day even in spite of the overall market. Stop loss is $16.90. The CEO was a guest on CNBC Fast Money tonight. We will see tomorrow if the market likes what he said or if they feel there is no fiz left.

Note: If JSDA exhibits signs tomorrow of any high volume selling I will not wait for the stop loss to be hit and will sell before that. A sign of any high volume selling early may be an indication that traders and investors did not hear anything they liked from the CEO and may want to exit. In which case I will also. And come back another time.