Here are a couple of nice trades from Monday to start the week. Well I say nice. The first one went pear-shaped from the off, but redeemed itself shortly after. Here’s the chart:
Sometimes everything lines up, the setup looks good, the pattern is nice and all the off-chart indicators say go for it. So we go for it, and…nothing. The price doesn’t follow through. It happens, it’s part of the game, and it’s something we have to live with.
It’s what happened here on AMTD. There was no follow through. The answer, when trading my strategy at least, is to get out fast. In this case I was able to get out at break even because there was just about enough movement to cover the spread, if not the commissions.
Things went better with the second entry, and then we were off to the races. The exit came on the red bar because we’d got above a target level.
There was another push about fifteen minutes later, and emboldened with nearly a thousand dollars profit in the back pocket, it was worth giving it a go. Again, we know we can get out with at worst a few cents loss, so the risk is minimal. In the end it rose nicely and added another $600 to the pot.
ZS offered a more straightforward trade:
It was very unremarkable but I’m posting it here because I don’t think I’ve ever posted this stock before. In fact I’m not sure I’ve even traded it before. Anyway, it was a classic setup and this time there was no messing around — the momentum carried us well into profit. The red bar was a moment to be cautious, but there was no real effort behind the push downwards so it was worth holding on to see if it went further. It would have been perfectly valid to exit at that red bar, but one of the joys of reading price is that we can be flexible and react to what the chart is telling us. In this case it was saying, I don’t think I’m quite done yet….