Aug
15
Planning A Stock Trade Ahead of Time
Filed Under Main Content | Leave a Comment
Here’s some trades I’m watching in the new Trade Planner Platform we are working on. These are just example pictures as the software is "live" during the trading day.
 |
 |
This demonstrates how we like to determine the entry price, stop-loss and targets ahead of time. Planning the trade on the chart gives a good perspective and helps visualize the expectations. We know the risk in advance and it forces us to focus on the trade before pulling the trigger. Then, the execution is programmed in at the broker and it’s on autopilot.
I really believe in calculating all the details of a trade ahead of time and executing the trade according to the plan. This takes all the emotion out of the equation. Once the entire trade is set up I can sit back and watch it play out. You know what they say, "Plan your trade and trade your plan". Good advice.
Aug
13
Our trade in HL was closed this morning with a nice profit. Decided not to increase position as the stock took off right at the open and blew past the second entry point.
 |
Bought 8/13/08 at 6.62 right near the end of the day.
Sold 1/2 position up 4% at 6.88
Sold 1/2 position up 8% at 7.15
Net gain was 6%.
Not bad for holding a couple hours. Held overnight so it was not considered a day trade I suppose, not that it matters.
Lately in this choppy market I have been looking for entries mid-day or later in the afternoon rather than try to jump in at the open or in the morning. In many cases I get a better feel for a stock after it’s traded a while and I can look for good entries. Waiting for good technical patterns later in the day keeps me from getting whipsawed.
 |
Download The Market Toolbox
Desktop Financial Portal
The World’s Most Comprehensive Financial Software