SPWH – One of the best trades I have made in a while. Risk management was great. I did not get my full size as it ran a little at my buy point but i did not chase. I recognized this stock was a grinder and did not get shaken out when I was red on it for a while. Got 12 cents on it and that was decent for a Momo play. It was a good trade overall. Was a little bummed out that I did not get my full size. Also a tad or two longer I possibly could have gotten 22 cents on it instead. Well thats always tricky to smack the top.
I will start off my blog right in the middle of where I am at right now in my journey. When to get out of a trade?
- The set-up I am in the trade for does not exist anymore
- When my max loss has been hit
- When there is a huge amount of sellers absorbing volume slowly
Only when I hit my profit target (Not letting your trade ride out prevents you from having those big winners and letting it ride beyond your target is what makes winners become losers) Take profits into strength when going long and vice versa for going short.
- When a key level in the chart pattern, that I was playing off, has been broken.
4 5 simple golden rules of getting your ass outta trouble. Much harder than it seems. Really.
As a student of trading, I am allowed to add to my rules along the way. Looks like it became 5 rules now. Edited: 10 July 2017.