Trading Lessons are a feature here in The Bandit Hideout where we take a look back at a trade and see what we can learn from it. It might have been a winner which paid us nicely, and we’ll want to know what it was about that play that worked so well for us. Or it might be a trade which performed poorly for us, thereby offering us another valuable lesson which we might can apply going forward in hopes of avoiding a repeat mistake.
Whatever it is, the aim is to use the old ‘hindsight is 20/20’ adage to our advantage. We can learn a lot from the past! There’s no reason to ignore it when it can help us improve as traders.
Trading Lesson for 10-24-2011:
Over the weekend, I highlighted X as a day trade candidate for Monday’s session if it could clear the $24 area.
In this video, I’ll take you through the setup and how I managed the trade, offering some insights which will hopefully help you in the future, so I hope you enjoy it. If you have questions or comments, please feel free to leave them down below!
Trading Lesson Video – Click to Watch!
Always consider the various factors which could play a role in a stock’s movement, from levels found on the daily chart to the intraday trends and shifts. It can help keep you in a good trade and help you know when it’s time to start shifting to the sidelines.
nice video. Somewhat preempts my email to you earlier, before I saw this. But, my question here, is did you really leave the 1% stop in place unchanged for the entire run up? Seems to me that once it was clearly trending up and crossed the 1% up, the stop should have been moved to a logical place closer to break even or even above.
Hi Jon, thanks! No I like to bump up my stop appropriately, and in the video I mentioned using prior intraday support as my stop on remaining shares. Sometimes I’m glad I tightened and other times I wish I’d left it alone, but that’s just part of my style.
Hope this helps!