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Friday, 05/30/2014 6:45:42 PM

Friday, May 30, 2014 6:45:42 PM

Post# of 354493
Weekly Paper Position Update



With the Parexel International Corporation (PRXL) call I had the 'take the money and run' attitude. I will admit it was strictly emotional. I never put an exit strategy in place before buying the call. I wouldn't continue to do this regularly, however with (PRXL) being the first paper trade I didn't know what to expect. I still believe (PRXL) could continue higher and the technicals still seem to be strong.

You might think I'm crazy with the Aegerion Pharmaceuticals, Inc. (AEGR) call, that's okay! I also like to live dangerously. Yes, that $12.20 premium is pricey, but I think it's well worth it. The reason I paid up was mainly for the Delta and the open int. I don't pay practically too much attention to the premium, I'm going for quality not quantity here. Sure, there's no way I would drop $1,220 on a call with real money, I'm a broke college student. Though this is paper trading and I'm simply testing a strategy.

I'm actually late to rally, but not too late. The technical strategy I have set showed (AEGR) as a buy yesterday, though I'm not chasing the bull here and believe there's still plenty of upside. The technicals appear to be strong to me and there's even a gap. I'm not a big fan of gaps and I honestly don't know a whole lot about them, so I tend to stay away. Though for the 'all gaps must fill', then I suppose this could make the technicals appear even stronger. I don't plan to hold the (AEGR) call as long as the (PRXL) call mainly because I don't like the 'channel down' chart patten. I see this as short-term despite it being a LEAP. I hope to be out in a week or two, but if not then I have plenty of time.

I might be emotionally selling, but I'm not emotionally buying. I decided to buy the "Extra" level membership at StockCharts.com. To find the (PRXL) call I had to tediously look at 100's of charts to find the technical indicators that matched what I was seeking. The "Extra" level membership on StockCharts.com does the work for you. Just punch in the criteria you're looking for and presto, a list of stocks that match. I said emotionally buying; because some charts sorta matched what I was looking for but at the end of the day it wasn't meant to be, no matter how badly I wanted it to. I highly recommend this membership to beginners to help them screen what you're looking for, it's worth every penny and saves you time.

I'm noticing that the strategy I'm using is mainly targeting stocks that have been beaten up recently which I believe could rebound. I made a few tweaks here and untangled some kinks there, though I still have a long of road ahead of me.

Was it beginners' luck or am I heading in the right direction? We will see.

Thanks for reading, Gulley