Swing Trade opportunity missed by a day
11/08/14 – This potential Swing trade opportunity was trading way up in the pre-market session over a price of 42.00. This information would mean that my Stop Buy order would trigger at the open price and this gap up would have already surpassed my target price. The distance between this gap up open price and my stop loss would be way to great and would make this a purely speculative trade. I decided, pre-market, to cancel my Stop Buy order and sent out an Urgent email to all subscribers of my trading diary of my decision. A very sensible decision as the price opened at nearly 42.50 and then proceeded to drop as those traders and investors that were already in a Long Trade with this stock started selling off and taking profits. To catch a Swing Trade at the right time is a difficult science sometimes, in this case the price had not exited the trend channel the previous day so I had to stick to my strategy and not enter. A very previous example of a Swing trade that I did get into in time for a large price move was TRLA and the full trade diary for this can be seen HERE . All a trader can do is stay disciplined and true to his or her strategies, what we cannot do is try and second guess market movements on a potential Swing Trade opportunity. Chart as below.
09/08/14 -This potential Swing Trade opportunity on the NYSE has 8/9 of my trading indicators, for my “with trend” trading strategy, in the green. The 50% Fib line taken between Wave 2 and Wave 3, along with the TJ’s Ellipse, seems to be acting as support at the moment. I have opted for quite a conservative, but sensible, entry strategy to this potential swing trade which is way out of the Trend Channel for Monday’s bar and crucially above the highs of all 5 bars (trading days) of last week. So I have placed a Stop Buy Order for this potential Swing Trade @ 36.40. The Stop Loss, as usual, is below the Wave 4 extreme and is at 35.10, whilst the initial take Profit Limit Order is at 39.25 giving a Risk to Reward ratio of 1:2. Charts as Below