RAX second target revised

RAX daily 2I have revised the second target (T2) on the RAX short from 60.00 to 60.40.  In the past, I would list my targets with the same price level where I expected the stock to find support (on shorts) or resistance (on longs), often stating that my preference was to set my sell order (to book profits on longs) or buy-to-cover order (profits on short trades) slightly above those levels as to avoid missing a fill as there are often large clusters of buy (sell) orders just above (below) a key support (resistance) level, especially when that level is very obvious to the masses.

However, with new followers continually finding the site, I have recently started to make the price adjustment to my targets to accurately reflect where I would personally plan to exit my trade (just below resistance on a long or above support on a short).  These target adjustments often vary depending on the chart and other factors that I believe might affect the stock.  In other words, on some trades I will book profits right on or very close to the level that I expect a bounce while on others, I may book profits quite a bit ahead of the expected support/resistance level.  With that being said, upon further reviewing the chart of RAX, I am making a slight adjustment to T2, which is still my preferred target for now, from 60.00 to 60.40 as reflected on this updated chart.  As always, book profits and set stops that are commensurate with your own personal trading/investing style, risk tolerance and according to your trading plan.

Feb 13, 2013 10:52am|Categories: Completed Trades - Short|Tags: |Comments Off on RAX second target revised