Dummy Trading

I've been reading the Chairmans blog for ages, his simple and robust trading approach sums up what trading is all about, going with the trend and for great risk / reward rations by keeping your losers small while running your winners.

From the Chairmans website www.maoxian.com

"American Superconductor, 30-minute Chart

I don't have as much time as usual to fool around posting stuff. On my busy days I'm simply going to put up a chart that people can use to practice their Trading for Dummies techniques.

Questions:

1) Why would you be paying attention to this stock last Friday?
2) Is the trend up or down? Would you be looking to get long or short this stock?
3) Where would you get long/short this stock last Friday?
4) Where would you put the initial protective stop?
5) When would you stop trading for the day?
6) Where would you exit the position?

Answers:
1) Because it's unusually active, and very volatile.
2) Up. You'd be looking long.
3) Long at 11.83 on a buy stop above the 11:30 bar.
4) Tighter: 11.44. Looser: 11.34.
5) Right after you enter the position or lunchtime, whichever comes first.
6) End of day. Could sell half, carry half, or just close it all at once."