iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,546 Blog Posts

Let’s STOP and Look at This YGE Trade

After FSLR reported weak numbers after hours we saw shares of YGE making a sympathy move lower.  As you all very well [should] know, I sized up my YGE position yesterday.  In fact, I made it full size.

A quick yet perhaps excruciating read of my reactionary opine may give you insight into how I really felt upon receiving my judgment from the market.  Since The STOP Method© is not only preserving but building my emotional capital in futures trading, I thought it best to apply the tool to my YGE trade.  Let’s have a look, shall we?

The cue on the YGE trade is a slight variation.  I haven’t yet been stopped out but from what I saw taking place afterhours and the overall sell flow in the indices, this trade may take some heat.  We’re being proactive.

THE CUE: “WE GONE TAKE SOME HEAT”

 

CUE_takingheat1
THE ROUTINE: Stop Method

 

STOP_METHOD

 

  • S – Score trades compliance with the trading plan:

Here’s a post on the YGE plan, but I’ll tell you the main talking points and show
you the chart:

Like I said, I corrected course and I’m still riding the name, including taking half my position up Friday’s ramp, so I’m still pretty excited about this trade, all things considered.  Now that I’ve booked some profits, and have a green cushion, I’m sticking to the following plan for the YGE trade, including riding though earnings, if necessary, to achieve my $5.00 target.

YGE_07072013_WEEKLY

The trade carries risk down to $3.25.  And to be honest, that price level is a bit mushy.

I sized up around four bucks and I had a 1/3 position hanging around from $3.09.  The buys brought my cost basis up to $3.70.  I’m targeting $4.30 for my first scale and ~ $4.85 for my second.

The trade carries around a 2:1 risk/reward, and my plan for trading stocks is pretty simple: Trade the pullbacks in trending stocks.

Is YGE trending?  I trade from daily charts, yes it is.

Is YGE pulling back? Yes

At full size on $3.70, with a stop of $3.25, the trade is risking 1 percent of my portfolio.  Perfect.

Trades compliance with the plan: 100% “Oh yeah”

  • T – Target logical price levels:

YGE_08062013

  • O – Observe the trend:

YGE_08062013_trend

  • P – Patiently wait for your next opportunity.

For this situation, I’ve fired all my buy bullets, and I have three of four sell bullets loaded in the chamber.  My only opportunity at this point is to stop the trade out, or scale profits.  Until we reach logical levels, I have no reason to sell in any way, shape, or form.

So now we wait as that stock operator fellow who killed himself said.  Odd his writings are immortalized when he’s such a coward, no?  Here’s to hoping evil algos don’t read my blog!  ::clink clink::

Oh and also, let us not forget the reward for such actions…

THE REWARD: BOSS

STOP_Reward

http://youtu.be/2YcIgow6TDk

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2 comments

  1. UncleBuccs

    Spectacular post. I’m bookmarking it.

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  2. Raul3

    The process is enjoyable, let’s hope you’re bookmarking a winning trade!

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