This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
But I still had only a 33% win rate! It’s my own fault since I forced a late day trade, but I still ended up +0.65R for the day. After discussions with StreetSmack from Wallstreak yesterday, I decided to only trade gappers after 10:00 am ET. I also decided to crank up my $ risk per trade to 1% of my equity instead of 0.5% as I have done so far. I’ll crank it up further as (if?) my reliability increases.
As always, Orange is my entry, Red my stop in effect, thin Blue is a partial exit, thick Blue is full exit, Green is a target. I’m using targets less now, just trying to take a partial and let the rest run until there’s some kind of big reversal sign or formidable resistance. I like to have at least 1R between my entry and the first probable resistance level, though, to avoid taking too much risk for any potential reward.
I took SMDI long as shown below:
Entered based on green candle on volume uptick, rising 5-ema. It stalled, printed a red candle and I bailed to keep losses small.
Trade Summary:
SMDI Long
Entry: $12.80, Stop: $12.50, Target: $13.32 (52 week high)
Exit: $12.74, P/L: -0.22R
Trade Grade:
I also traded SMSI (Today’s market brought to you by the letters S, M, and I, by the way). Twice! Should have stayed with once, since the last one was entered after 3:00 pm. I’m very tempted to “just get one more”, and I should not enter new positions after 3:00 pm to avoid doing this. Manage open trades, yes. Enter new ones, no.
Here’s the charts:
SMSI Trade #1:
Broke a green candle to the upside on a volume uptick. Took partial after first red candle, let the rest ride. Sold the rest when the OR high breakout stalled.
Trade Summary:
SMSI Long
Entry: $15.24, Stop: $14.98, Target: $15.80
Exit: $15.77, P/L: 1.37R
Trade Grade:
SMSI Trade #2:
This later entry is shown to the right in the chart.
I thought it could run to the 119% Fib before the close, but it stalled out, and I held a bit longer than I should have, but still got out before I hit my initial stop. Would you believe the candle was green when I entered? Oh well, getting better, I guess!
Trade Summary:
SMSI Long
Entry: $16.01, Stop: $15.80, Target: $16.28
Exit: $15.91, P/L: -0.50R
Trade Grade:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
