Don't pay dollar to keep 2 cents when wrong. Cut your losses quickly. Trade what you see, not what you think.
Joined Oct 26, 2011
719 Blog Posts

The gift of an AAPL?

I was surprised at the harsh downdraft of AAPL today; you don’t get to see a 4-5% drop of AAPL on a regular basis.  Now with most of the trading day almost over, I see AAPL is forming a minor V shape on a 5 minutes chart.

Knowing where I put my stop, which will provide me a low-risk swing trade, allows me to execute this trade easily.  Of course, there is a good chance I’ll get stop out but it is the idea of a low-risk trade that make the trade easy to execute.

Below is the 5 minutes AAPL chart:

If I don’t get stop out today, I’ll ride this trade to tomorrow.

Trade well.

Edit:  Just got stop-out for small losses.  This trade is OVER.  I will not try to find another bottom to catch.  The fact that it  also took out intra-day low does not bode well for AAPL.



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