as mentioned in the last update on the PAAS short trade, T2 is either the bottom of the channel or the horizontal line, whichever comes first and keep in mind that we came within pennies of the bottom of the channel today. i will leave this on as an active trade for now but for being that this trade is already about 15% from the entry, it wouldn’t hurt to take some/all profits or at least lower your stops. this string of charts is in order as posted with the first two charts (2-day period) followed by today’s daily chart.
one other thing to keep in mind regarding the calculation of gains on the trade ideas posted here: for short trades, i use the lower (and more accurate) of the two figures often used to calculate gains. i take the entry price minus the exit (cover) price, divided by the entry price. some might think if you shorted a stock at 130 and covered at 100 that you made a 30% gain, when you actually only made 23% on the trade. how does that work? well, technically speaking, you did buy (bought-to-cover) the stock at 100 and sold (sold short) at 130 so why isn’t that a 30% gain like it would be on a long trade? the reason is that you had to put up $130 to make $30 (30/130=23%) while the long-side trade who bought at 100 & sold at 130 made a 30% on his captial (30/100=30%). capice?