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Monday, July 27, 2009
July 27 - AXP (Failed trade)
With this trade I paid the price of anticipation. The correct bar to enter the trade would have been the next bar after my entry. I entered early and I got stopped out :-(
I use the outside bar plus 2 cents or previous bar high plus 2 cents, but you have to define your own rules. Whatever you decide, you have to add a few cents otherwise you're going to get stopped out on perfectly good setups. I noticed your SKF trade back in early July was similar stop out on a big momo move. The 3 letter stocks need more wiggle room than the four letter ones because the specialist will stop you out if he wants your shares.
4 comments:
Anarco,
How do you set your stop on this type of setup?
It is the top of my entry bar.
Do you think that since the trigger bar is an NRIB the top should have been the top of the outer bar?
Anarco,
I use the outside bar plus 2 cents or previous bar high plus 2 cents, but you have to define your own rules. Whatever you decide, you have to add a few cents otherwise you're going to get stopped out on perfectly good setups. I noticed your SKF trade back in early July was similar stop out on a big momo move. The 3 letter stocks need more wiggle room than the four letter ones because the specialist will stop you out if he wants your shares.
Thank you very much Jamie!
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