By the 10 Mar 08

By the 10 Mar 08, after eight trading days the stock is down to closed
at $50.52, the option premium has increased to $10.30 giving me a
profit of $3.80, a 58% returns.

Looking at the chart the MACD histogram is now at negative territory
indicating a possible longer term bearish trend but William %R is at
the bottom signaling me to get out.

Here comes the greed and the fear factor, greedy to want more profits
and at the same time fear of losing out the profits if the stock turns
around. In order not to be effected by this emotion a trailing stop of
$0.40 was set. This means that if the stock keeps on falling the profits
will be maximized and on the other hand if the stock reverses back up
then it would trigger the trailing stop to exit the position.




Setting my trades on automated mode gives me plenty of time to blog
() while I trade and I don’t have to
stare at the charts for opportunity.

Many who take big risk on earnings will

Many who take big risk on earnings will see it as small profit but I can
sleep soundly without any stress. I obviously don’t want to win big one
day and get a heart attack the next day. Trading should be relaxed
and it has to be consistent. It should not affect our life physically or
emotionally.

Case Study #2 Foundation Coal Holdings Inc

FCL was spotted a bearish reversal candlestick formation on 29 Feb
before market opens which fulfilled all the bearish reversal conditions
coupled with a strong negative divergence present in the stock chart.

FCL was trading at $57.77 and the low was at $56.83 and the trading
plan for FCL entry was set up using a conditional order.

If stock price < $56.60, buy Apr 08 $60.00 Puts

However the order was only triggered 4 days later @ $6.50 when the
stock falls below the entry point. Having paid $3.10 for the time value
leaving behind $3.40 in intrinsic value, I must bear in mind that if the
stock moves sideways, time decay is going to be harmful to this trade.

A stop loss was then set at $4.50 giving enough room for the daily
noises and a maximum of two weeks holding period.

PVH was trading at $41

PVH was trading at $41.65 and if stock price is below $40.50 which is
the low of the reversal candlestick, then buy Jun 08 $40 puts.

A condition order was set up for PVH

Jun08 $40 Put @ market, if stock price < $40.50

The next morning when I switch on my computer to check on my
trades, the order was triggered as the stock plunge below $40.50
and PVH Jun08 $40 Put filled at $4.50 and closed at $5.00,
$0.50 or 11.1% profit in the same day.




After three trading days the stock was down at $37.00, the option
premium has increased to $5.80. Looking at the chart the MACD
histogram is at about half way, still have room to drop but the
William %R is at the bottom sending me a signal to exit.

The question is which indicator to depend on? If you are greedy you
would have stay on, base on my experience it is better to get out even
if there is a possibility to drop some more.

The stock open lower, many would have refused to get out, by then
the options has gone up to $6.20. I set my stop to $6.10 to protect my
profits if it turns around during half time which is common and I can
sleep without any worries of my profits being wiped out.

The stock has indeed turn around and the stop was trigger at
$6.00, giving me $1.50 profit which is about 25% profits in 4
trading days.

EGGS BAKED IN TOMATO SAUCE

EGGS BAKED IN TOMATO SAUCE
Make a tomato sauce. Pour one-half in the bottom of a baking dish or
granite platter, break in from four to six fresh eggs, cover with the
other half of the sauce, dust the top with grated cheese, and bake in
a moderate oven until "set," about fifteen or twenty minutes. Serve
for supper in the place of meat.

EGGS ROSSINI

EGGS ROSSINI
6 eggs
4 chicken livers
12 nice mushrooms
1/2 cupful of stock
1/2 teaspoonful of salt
1 dash of pepper
Put the stock in a saucepan and boil rapidly until reduced one-half,
add a drop or two of browning. Throw the chicken livers into boiling
water and let them simmer gently for ten minutes; drain. Slice the
mushrooms and put them, with the livers, into the stock; let them
stand until you have cooked the eggs. Put a tablespoonful of butter in
the bottom of a shallow platter; when melted break in the eggs, stand
them in the oven until "set," garnish with the livers and mushrooms and pour over the sauce.

EGGS A LA TRINIDAD

EGGS A LA TRINIDAD
6 eggs
2 lamb's kidneys
1 cupful of fresh bread crumbs
2 level tablespoonfuls of butter
2 level tablespoonfuls of flour
1/2 pint of stock
1 teaspoonful of kitchen bouquet
1/2 teaspoonful of salt
1 saltspoonful of pepper
Split the kidneys, cut out the tubes; scald them, drain, and cut them
into thin slices. Put the butter into a saucepan, add the kidneys,
toss until the kidneys are cooked, then add the flour, stock, kitchen
bouquet, salt and pepper; stir until boiling. Grease a shallow granite
or silver platter, break into it the eggs, sprinkle over the bread
crumbs and stand them in the oven until the eggs are "set," then pour
over the sauce, arrange the kidneys around the edge of the dish and
send at once to the table.