Just time to post one trade today, which actually turned out to be two. The first one failed miserably, as we can see from the chart.
The golden rule, as we know. is to never let a winning trade turn into a losing one. So when after entering, momentum evaporated, it was time to get straight back out with just a few cents. Taking $100 covers the commisision and leaves enough profit for a nice lunch somewhere, which is better than losing money on a trade that didn’t work out. Stop loss orders are for emergencies only — we never want to actually let them get hit!
That wasn’t the end of the story though. There was no reason not to keep watching TMUS (and plenty of reasons to think it had further to fall), so when momentum picked up and it headed south again, it was worth jumping on board. With a nice target easily hit, and a more decent chunk of the profit pie banked, it was time to get out.
For those less lazy than myself, there were further opportunities to make some money from the continuing fall in price later on.