FISV Trade on Jan 16, 2019 10:16 from math_psycho: Tradervue User Stock Trades.

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math_psycho

 

TICKER: FISV
BIAS: LONG
SUPP: 68.5-69, 70, 71
RES: 71.5-72, 73
GAP%: -7
AVGV: 2.1
ATR: 2.23
FS%: 1.66

NEWS: The all-stock deal will have First Data (NYSE:FDC) owners getting 0.303 Fiserv (NASDAQ:FISV) shares for each share of FDC they hold. The merger is seen generating about $900M of run-rate expense savings, and at least $500M of revenue synergies. More than $4B of annual free cash flow is seen by year 3, and the deal is expected to be immediately accretive to adjusted EPS by more than 20%.

PLAYBOOK TRADE: GAP DOWN BOTTOM BOUNCE. Look for a bounce reversal off of a support level and wait for price to approach this level again using the low as a stop while watching the tape for signs of a good entry. Price targets are key resistance and signs on the tape for a cover.

Notes: The stock put in a low at $68.45 or so and bounced back up to $70 fairly quickly. I waited for a pullback to around the $69 level and used the local low of $68.70 or so as a stop as it appeared buyers stepped in as it bounced from that level quickly up to $68.30. After it seemed to put in a new higher low around $68.90 I put a bid in for $69.03 with the stop $68.70. My price target was 1.5 points and I took profits out a little too early with an overall take of about 1.2 points. Entered again later in the afternoon for another 80 cent long trade.


Execution detail:

Date/time Symbol Side Price Position
2019-01-16 10:16:23 FISV buy $69.030 long
2019-01-16 10:34:46 FISV sell $69.890 long
2019-01-16 10:39:40 FISV buy $70.060 long
2019-01-16 11:01:36 FISV sell $70.280 0


Comments

Gravatar AriTrading
2019-01-17 16:29:09
 

Beautiful Trade. That is a fantastic playbook description. I just finished with the SMB DNA course and am trying to build some playbook trades. I have been trading about a year without much success (about 50/50 win/loss ratio). This really helps me out because I have done this trade in the past really well and I had never put together a playbook description of it like you have. I'm definitely adding it to mine, thank you!

2019-01-18 05:54:19
 

Hey thanks for your feedback... I appreciate it. I just started writing down my playbook trades this past 2 weeks or so. I read through some of your recent trade descriptions and it is evident that you are putting in a lot of time and kudos for that. By the way, what is your typical reward:risk ratio on your playbook trades? The reason I’m asking is because if you have a 50% success rate on your trades then you really could be killing it with a 5:1. Maybe some food for thought?

2019-01-18 16:46:30
 

Nice entry man, the doji on the flag I LOVE IT :D Anticipating the first green candle to make a new high!! BTW I would be careful going long and in such anticipation on a stock with such drop in pre market. I think following market direction will pay you back in the long term and in every market condition ;)
All the best!!

Gravatar AriTrading
2019-01-18 19:49:26
 

Thank you for the compliment. You're absolutely right about my risk/reward ratios. Since I am under the PDT rule I don't get to put up too many trades but I have 160 trades total. Only recently have I started looking for 5/1 risk reward setups, almost this entire time I was doing 2/1 or 3/1. This would still net me a good profit and most of the time it did, but every once in awhile I would completely disobey my rules and I wouldn't hit out of a stock trading against me. Out of 160 trades I can literally trace back almost 50% of my total losses from 8 or 9 separate trades where I didn't hit out of the stock, resulting in account crippling losses (all before I joined SMB except one where I actually was hitting out of the stock but I was sized in wayyyyy too much, fixed that). The rest of the time was me trying to grind my way back up - which I'm still doing. I decided this past week to do simulated/paper trading for a few weeks while I'm trying to clearly define the setups that I like and can practice them to develop edge, this way I have the best chance of succeeding when I open an account with SureTrader and the shackles are off.

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