i need to update several old trades that are still listed under the Active Trades category. here are a few of the trades that should have already been moved to the complete trades section as almost all of theseshort trades had already hit one or more of their profit targets but have since been stopped out:
BIIB- broke below the uptrend line only very briefly, triggering a short entry, but then prices immediately reversed by gapping back above the uptrend line the next day and continued to move higher from there, thereby quickly triggering a stop as per the criteria in the last post.
AAPL- the AAPL short was based off the 60 minute chart. AAPL did hit the first price target and actually fell about half-way to T2 but then prices reversed. stops should have been triggered no later than when prices moved back above the T1 (then resistance) level, if not sooner had stops been trailed down after T1 support was broken.
CBG- hit and exceeded T1 and then move back above T1 (then resistance) to trigger a stop.
CME- hit and exceed T2 & then moved back considerably above that level, triggering a stop.
FB- as posted, this was an unofficial trade the other day which was stopped as per the suggested criteria. this one will not be moved to the Completed Trades category as it was not an official trade.
PEET- stopped out yesterday as per the suggested criteria.
RF- made a perfect tag of the first target (T1) level before bouncing back above entry, thereby logically triggering a stop if one did not take profits at T1
remember, once support is broken, it becomes resistance, and vice versa. there are countless ways to trade the trade ideas posted here but some of the more common trading rules regarding stops are to raise (on longs) or lower (on shorts) your stops to your entry price once the trade has comfortably moved to a profitable level (typically by 2-3% but that will vary depending on your trading style, time frame and profit target). it is usually a good idea to raise (or lower) your stops once your first target is hit, even if you have taken partial profits at that level. some traders might sell 1/2 of their position at a pre-determined target while setting the stops on the remaining 1/2 to assure a profit or at least break-even on the trade while letting the other half ride for a higher profit target. honestly, there are a myriad of possibilities but the important thing is to make sure that you DO use a stop and decide where that stop (or multiple stops) will be when you take the trade.
there are a lot of what i consider to be worthless “truisms” (to use the word loosely) on wall street, such as the famous quote from warren buffet: “Rule No.1 is never lose money. Rule No.2 is never forget rule number one.” well folks, anyone who embarks on a career as a trader, or even a part-time investor will quickly learn that’s not possible, not even remotely close, although i’d imagine that mr. buffet did not mean for that statement to be taken literally. in fact, many traders experience more losing trades than winning trades, some by a wide margin too. losses are a natural part of trading or investing but the key is to minimize the magnitude of those losses and maximize the gains on your winning trades (cut your losses and let your winners run). if you can successfully balance the two, then it is entirely possible to have a win loss ratio of less than 50% and still be profitable. a single 30% gain makes up for a string of six 5% losing trades. however, the big problems come from when you allow the losses on a trade, or your entire portfolio to get out of hand. if you lose 50% on a stock, you then need the stock to go up 100% just to break even.