-Bought at 41.43 (9:56) on the breakout. Sp500 also seemed favourable with slight uptick. Stop triggered 40.98 (10:51).
-Thoughts. The entry was OK; a fair bet on the breakout. I failed on the stop. If it was going to breakout, a 20 cent stop would be sufficient. I put the stop at 40.98...1% move in the stock price. Not justified. Clean breaking out stocks do not re-trace 1% after insignificant moves.
-Another trade I did trying to ride a breakout was AMZN. Recent high was 187.71, and I bought at 188.29 (10:16). I set my stop at the day´s low at 187.05 , and this was triggered at 10:53 .
-Thoughts : the stop was well placed at the previous low for the day; 0.64% from your entry. The stock started falling exactly when the SP500 did at 10:36 . Just a cost of business loss.
-DE was another breakout trade...and it also failed. It started falling at 10:36 with the market.
-Three trades , three losses...I was going to have my breakout trade! Instead of relaxing/going for a walk I persisted . This wrong mindset led me to a trade I normally would not take. I went long FCX just because it was showing some relative strength, and put a dollar size stop . The 117.45 line I show in the chart I was not even aware of at the time of the trade. Horrible trade; no method.
-I also managed to screw up two trades in LLL but too tired to write them up now. Funnily enough this one did truly break out!
Monday, January 10, 2011
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