NEW YORK (TheStreet) -- On Thursday I woke up, turned on my computer, logged into my trading account and shorted NetSuite (N) for $92.62. I was feeling super confident in this trade because I was using the same indicator I used on my double-digit return.
A few hours later, I checked the trade and saw N had dropped to the $88 dollar range. Normally I would have bought to cover at this point but because of my newly found indicator I've been using, I continued to hold it and move my stop closer to current price, locking in profits.
Friday morning, I woke up and saw the stock continuing to flutter in the $88 range. I closed my computer and went out for a run, still feeling confident in holding my short position. At around 8:30 a.m. PDT, I came back from my run through the canyons. Instead of feeling fanatical and nervous about the trade, I had 100% confidence in the trade, remembering the one impeccable indicator that told me this stock was going to continue tumbling for a little while longer.
At around 9 a.m. PDT, I took a shower, read a script made a few phone calls and checked back at around 10 a.m. To my delight, the stock had dropped all the way down to the mid $84 range. Happy with the profits, I bought to cover at $84.48.
That trade brought me a total of $8.14 per share in profit.
I checked the stock's technicals when I was considering exiting and a daily chart of N showed that it was advisable to hold onto the short for even longer. The candles continued to be long, strong and bearish after firing short out of the bearish continuation pattern $N had been stuck in last week.
I decided to move on and get out of the trade because I was happy with the gain and believed that bullish moves are on the horizon in the coming weeks for the market as a whole. Instead of fighting that trend and holding onto my short position, I thought it best not to fight the market. Don't try to go short when the tides are rising, was my thinking.
I mentioned in a blog last week a tool I used to help me achieve a very successful double-digit percentage gain on a single trade in a matter of days. The same tool helped me find this short on N.
That awesome indicator is called Chaikin Analytics. The only way to understand how incredible it is, is to try it yourself.
What I was missing from my trading methods a few months prior to using the tool was the fundamental blend of information Chaikin Analytics gave me. I don't want to be an expert in every stock sector or industry. However, I want to understand a few key things about each company because these key things will help me determine if the foundations of a stock can hold up a bullish pattern, or if the company could come falling down at any point and time.
That's exactly what the Chaikin Analytics Tool does. It compiles important stats regarding:
- cash flow
- earnings consistency
- analyst perspective
- stocks relative strength versus the market strength
- short interest
- insider activity
and so so much more.
It also gives me an overall understanding of how the stock is doing technically. The indicator is geared for longer-term analysis, a little longer than I'm accustomed to. Since I prefer getting in and out of my trades at a faster pace, I use my personal trading account's more in-depth technical analysis for more guidance in the short term.
Chaikin has identified several winning shorts and longs over the past few months I've been using it. No matter what your level of trading is, this indicator will be extremely useful to you and is understandable at all levels.
Those of you who are going to try it out, please share with us at Fox on Stocks your success stories. I'd love to see how you use this tool and how you profited from it. We'd also love to publish your success stories on future blog posts! Email us at firstname.lastname@example.org and put the word "Chaikin" in the subject line. Enjoy using this smart, amazing indicator and
Many Happy Returns,
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.