Trades in NEW 10/11/05

NEW offered only a couple good trades today.The first trade was a short at 34.29 off the 5 period sma.When it finally broke down I covered for two reasons,one being a counter with size down around 33.92 and the first penetration back through the 5 period sma.I covered at 34.00,for a +.29 winner.The second trade was another short at 33.90 after watching large size come down I managed to get short again off the 5 period sma.I covered at 33.67 after a swift move down to 33.60 a known pivot point was at 33.65 which I stated earlier today.This one was a quick .23 winner.I try and trade what I see in the moment and don't like to give too much back.On the chart above you can see my reason for exit was the first penetration of the 5 period sma.Some could have waited for the 15 period ema (the dark blue line) to exit and stayed in much longer than myself.Being somewhat of a scalper I like to keep my exits very tight and move on.Notice the 15 period ema was not penetrated back through until 33.77 after an even lower move down to 33.50.Yes I might sacrifice some profit,but at the same time I'm not giving up a quarter profit by holding on.These averages make great exit points,but must be used along with each traders own risk tolerance.