If there’s one company whose problems I definitely have no qualms about profiting from, it’s Facebook. Here’s a trade from Friday:
It’s all fairly standard fare. A regular entry, quick drop with a price target in mind, and when it wobbled a bit around that target, I took half off. Why not all? Because my target was quite conservative given how the price had been falling from the open, and because there was no conviction in its efforts to rise again.
That meant I had half my position left to take some profit from the second part of the move. That one did end with a positive upswing, so it was time to get out, with a total profit on the trade of $820 in about fifteen minutes or so.
It’s all about the momentum with these setups — it has to be there to confirm an entry. As long as it’s still there, I stay in. The chart only ever tells half the story, the rest plays out on the tape. People often forget that.