The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
QCOM added
Open Position Notes:
RAX turned higher off the open today, indicating it was perhaps ready to rally further, but soon the momentum faltered and the stock dipped into negative territory for the remainder of the afternoon. This stock continues to flirt with its breakdown area, but once again was able to close negative today, and I find that encouraging. I’m staying patient with this one while waiting for additional weakness to arrive, so I’m leaving my initial stop loss as-is heading into Tuesday.
Closed Positions:
No closed positions.
Hi Jeff,
I was wondering if you could comment on a day trade I made today. HANS was setting up on the daily chart for a new high so I’d set a stop to go long at $42.40. I had an initial stop about 1% below this and was looking for it to move about 1% before moving my stop up to about break even. It however only moved just over a half per cent from my entry but put a clear brief support area in around $42.55 (I was watching the 3 minute chart). I kept my stop at $42.19 regardless. My question is should I have moved my stop up once the clear support area was established around $42.55?
Hey Chris,
I actually like the way you managed it, and can’t say I’d have done anything differently. Typically I’ll only adjust my stop loss if either (A) I get up 1% or more in the trade (that is not automatic, but I will want to be up at least that much before I will alter it), or (B) if it’s late in the day and the session is winding down quickly (such as in the final hour). Earlier in the day (the way HANS was when you took it), I will stick with my initial stop, so my result would have been just like yours even though HANS had carved out some new support.
Ideally, the trade gets up 1 or 2%, and THEN creates some new support. In that event I’d look to bump up my stop, but today’s action would not have qualified as such with it only moving half a percent in the green before creating the new support level. I’d have felt as if I’m choking off the trade and not allowing it enough room to breathe (fluctuate).
Hope this helps!