Bought on break of flag (5 minute chart)
It drug along. Finally started moving so I sold.
I sold at support the second time.
Question: To get more out of this stock should I have placed my stop right under support?
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2013-10-11 10:45:06 | VVUS | buy | $11.070 | long |
2013-10-11 11:16:04 | VVUS | sell | $11.170 | long |
2013-10-11 11:28:26 | VVUS | sell | $11.220 | 0 |
Yes I think you should place a stop under support. Looks like you sold while it was performing a second flag. I did the same thing today. Good trade though... Pocket that profit.
Pretty chart, pretty trade! I like the first partial sell - good spot. Could have left the final partial to sell at the next resistance zone (from 30min chart, would be around 11.35 zone)
@ Bethomas,
On the last few shares always put stop at buy price so you can limit risk and maximize reward.
Gena - I am going to practice my exits nest week
Nape - had I put my stop at my buy price I might have noticed that I was at support and should have held a little longer.
Question: As long as the price is following close to support and riding up with it, is it fairly safe to hang on until you see a spike or drop below support?
If a given MA has been tested and holds it becomes support. Therefore, you can place your stop under the MA acting as support. Once the MA is broken it could mean a change in the trend/weakness.
I think it all depends on your tolerance too. If you have already taken some partial profit, you might have a bit more tolerance to put the stop a bit lower than you would have otherwise (so a few more cents below the MAs perhaps), just so you don't get shaken out, and still walk away with profit. OR, you may be less tolerable in that you had even more gains and don't want to leave them on the table by being stopped out later - and as such put the stop closer to the MAs or only a penny under. I tend to take the first approach - but that is me. I also really like to look at the 30min chart - because it is often alot cleaner, especially as time goes on into the day. You can really see the support being followed (or not) on it.
This is what I am going to practice this week:
I am going to keep a close eye on price vs MA this week and try to hold a little longer before exiting.
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Nice job.