well, not much to update although the trade is playing out as expected so far but as i was updating the trade categories today, i just noticed that on my original post that i had mistakenly typed the symbol as TBIX. i have corrected that mistake and here’s the updated chart of TIBX along with the previous charts.
note that i have moved out quite of bit of Active Trades from the Trade Set-ups section. these were trades that although they still might have plenty of room before one or more of their targets, they no longer offered a very objective entry. my preference is to enter or add to an existing trade as close as possible to the level where that trade broke-out (or broke-down) from a well defined pattern or support/resistance level. therefore, i can place my stop not too far on the other side of that level and easily quantify the downside potential on the trade. yes, one could enter a trade somewhere in-between the original posted entry spot and the next target, while placing an arbitrary stop X% below (or above for a short) the stock in order to limit any potential loss but what tends to happen is that a trade usually doesn’t go from point A (entry) to point B (target) in a straight line. there are usually counter-bounces along the way and that will greatly increase the odds of being stopped out for a loss if entering a trade in what i like to refer to as “no-man’s land” (in-between support and resistance).
