After my break even trade, I looked around again for another opportunity. This time, I went to ThinkOrSwim’s “Sizzle Index” and sorted by stocks only with gains on the day. One of the first one’s I came across was SAVA.
It made a huge breakout on the day, but looking at the minute charts, it was recovering from a fairly sizable pullback. When I looked at the 1min/3min charts, it had just made a new high on the day and looking today (Friday 9/23) made a very small pullback that I decided was worth the trade.
Entry – $43.50
Entry – $43.50
Target – $46.00
Stop – $42.70
R:R – 3.13
Exit – $47.55
Price danced around my entry for a couple of minutes but eventually triggered me into the trade and then about 5 minutes later made a strong push up. I was able to move my stop to break even, and from there I started following along the SAR on the 5 minute chart. Doing that allowed me to survive the relatively large pullback that happened again, but then price made another push up, pushing through my target.
That pullback was probably an opportunity to add to my position — I need to press my advantages when I have them, that’s how I really make the large gains. Scared money don’t make money. At least that’s what the experts seem to have done, I go back an forth. On one hand, I obviously want to do that, but on the other hand how do I know I have an advantage? I mean, I guess I never know and that’s the initial risk, I’m taking on a little more risk for a lot more reward. Obviously I have to implement it in some way.
I got aggressive with my stop, though when price pushed above my target; setting my stop at my target which was above the SAR. Price continued to push up, and I started following the SAR again. Eventually, my gf came out and wanted lunch, and when it got close, I changed my stop to a trailing stop, $1 behind, which was very quickly hit. It was a nice trade for a nice, ~$4/share profit.
Thinking back to, say, Corey’s charts, or even some other charts that I’ve seen in the past, taking a trade on a very quick pullback is the move. It allows a tighter stop, which means I can move to break even more quickly and make much larger gains if/when prices make the big $1+ moves. It makes me a little nervous, but as I keep saying, I just need to make the best decision I can make with the information I know and that I can gather every day.
Reading, the Tom Segura book, for example, he even talks about with comedy, you never know and you just have to just keep trying and figuring it out every time. Golf’s the same way. I can’t just sit back and try to trade on autopilot, I have to actively try to make the best decisions all of the time. Things seem to be trending up, keep working and keep staying positive, and don’t get too cocky and think you know anything/everything!