Another point that I should probably send out to the readers of this thread is that, if you don't ask questions, your questions will remain un-answered.
- #202
- Jul 17, 2012 12:59pm Jul 17, 2012 12:59pm
- Joined Feb 2009 | Status: kiki soso largyalo | 2,243 Posts
meine augen sind die sterne
Hello Split, could you indicate on the chart your entry and exit levels please? Seems to have been a good trading.
Thanks.
Greg.
I was in pretty early in PSX, my initial entry was at 33.53 on 14/6/2012 and then proceeded to add another position as the stock broke-out at 35.00 on the 16th of July.
You can forget about the first entry and focus on the second entry on the 16th of July. It was solely based on technical analysis. My stop on the trade was right below the strong buy day on the 13th of July at $33.25.
So if you calculate that on 100 share of the stock that would equal to:
$35.00 - $33.25 = $1.75 (stop loss and risk)
$1.75 * 100 shares = $175 (stop loss value)
This was the calculated downside, the upside on this position is unknown, as its broken into new highs. I personally will wait for it to hold above 35.00 before making any assessment on how I will take profits, I can take them on several different ways which I could explain in a different post.
I hope this makes sense.
Thanks for your answer!! 
I see, if your entry was at $35 with a SL at $33,25, then your Risk is $1,75 that is 5% of the position. This is your standard risk %?
I'm also interested on your swing trade from 14/6/2012. Would you please explain the analysis of the trade, if you don't matter?
Greg.
I see, if your entry was at $35 with a SL at $33,25, then your Risk is $1,75 that is 5% of the position. This is your standard risk %?
I'm also interested on your swing trade from 14/6/2012. Would you please explain the analysis of the trade, if you don't matter?
Greg.
Hi Gregofx,
I was in pretty early in PSX, my initial entry was at 33.53 on 14/6/2012 and then proceeded to add another position as the stock broke-out at 35.00 on the 16th of July.
You can forget about the first entry and focus on the second entry on the 16th of July. It was solely based on technical analysis. My stop on the trade was right below the strong buy day on the 13th of July at $33.25.
So if you calculate that on 100 share of the stock that would equal to:
$35.00 - $33.25 = $1.75 (stop loss and risk)
$1.75 * 100 shares = $175...
Thanks for your answer!!
I see, if your entry was at $35 with a SL at $33,25, then your Risk is $1,75 that is 5% of the position. This is your standard risk %?
I'm also interested on your swing trade from 14/6/2012. Would you please explain the analysis of the trade, if you don't matter?
Greg.
So for example if I had a $100,000 account and wanted to engineer this trade I would have entered with 300 shares.
300*1.75=525
525/100000= 0.00525= 0.525% (of my portfolio)
So if this trade went bad and hit my stop loss, I would have lost about half a percent of my capital, of course this stop loss size could vary from person to person, some are comfortable with 0.5% some with 1%, 2%...etc. It is important that you find your optimal size when trading as it plays an integral part in your eventual success of failure as a trader.
For more on the topic, here is an old article from an exceptional trader. Enjoy!
Thank you very much for your reply. I totally agree, the selection is very important, and it is that I'm failing. I'm sure I'll learn a lot from you!!! 
Nice trade Greg! Not one that I would personally trade, however, you should have a nice profit on your hands. The stock has obviously showed relative strength compared to the S&P 500 and the XLI (Industrial ETF). Your current SL at 8.50 is good, this stock should head higher if it continues to hold above 8.50.
My only concern with this stock is that it is illiquid, spikes and super volatile days seem to be the norm, you could easily be taken out on such an occasion. There's one thing that I NEED to emphasize on my thread and that is that NOT ALL...
Thank you very much for your reply. I totally agree, the selection is very important, and it is that I'm failing. I'm sure I'll learn a lot from you!!!