This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I traded SanDisk Corporation (NASDAQ: SNDK) from my retail account today. My prop account is not set up yet, so until then I’m taking only what look like very high probability setups, typically short timeframe and I’m being very aggressive with taking profit / setting stops. I also have to watch the daytrades in this account.
The Setup
I was watching lots of things today, as I called out on Wallstreak. I saw SNDK (after missing two good entries earlier in the day) setting up at the 138% fib extension:
I wanted to buy a break of the consolidation, with the exit strategy being a close below the 5-EMA on my chart. I wrote it off when the last candle in view broke down, and looked away. When I looked back, price had recovered and then some! I took this as a bullish sign, and bought at my original target entry price of $55.83 with my stop a few cents below the offending reversal at $55.60.
The Trade
Here’s the chart:
Some of the candles looked pretty nasty while they were forming, but I held as it didn’t close below the 5-EMA, which is Trader-X’s criteria for this setup. I managed the stops as noted. I decided to sell when I had to leave the computer for a while, and I didn’t want to leave the trade open–the declining volume was not encouraging to me. Turns out that would have been the more profitable thing to do, but it was the right decision for me to make given the info I had at the time, so I consider the trade and my execution to be a success.
Trade Summary:
SNDK Long
Entry: $55.83, Stop: $55.60, Target: $56.50
Exit: $56.33, P/L: 1.60R
Trade Grade:
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| SNDK |  |  |  |
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
