Here are some of my recent swing trades including the one that really stuck it to me.
The strategy isn’t rocket science. Basically I look for a consolidation pullback in the direction of the trend. Sometimes it’s as simple as a pullback that consolidates for one or two day, sometimes it’s resistance that is tested 2 or 3 times and looking ripe for a breakout.
MU – This one worked out great. I entered intra-day anticipating the breakout of the 3 days of consolidation prior. Although it did pull back to below my entry, I wasn’t too worried as it was still showing good strength. Had a beautiful gap up after I took a partial and I took the rest off the day it gapped up.
Next is Yelp. Had about a month long consolidation and just looked like it had a lot of energy bottled up just ready to head south. Was triggered in and had good follow through the first day and second only to hesitate just above my first target. Hindsight I am kicking myself for not just taking my first partial quicker but hindsight makes us all Michael Jordan’s. Wasn’t going to sit back and hope. Took it off at around BE minus commissions.
Next up is a position I am still holding. FNSR. Similar to Yelp. Had a big gap down, showed strong signs of selling and after seeing the first sign of the pullback ending (that big engulfing bar) and an inside candle the next day, I wanted in if it broke below the previous day’s low. Triggered in with a strong move south and took my first half off in a couple days. I am still holding the rest hoping to see another break down past the recent 2 day consolidation.
This is why I like talking partials. It allows me to stay patient and really get the most out of those trades that just take off.
Next up is the f*&^%*$. You can see my trigger in the yellow line was juuuuuust barely triggered. I liked the setup as the consolidation was very tight and looking to make a nice breakout to re-test the lows. Unfortunately to my dismay, I woke up to find that it gapped up 3 times my initial risk. I immediately took the position off at market open as I wasn’t going to let it completely blow my account.
Looking back it wasn’t such a bad trade and a good learning lesson. This is why we keep our risk limited and never get too cocky. I contemplated doubling my usual risk on this trade because the setup just looked so promising. I’m glad I stuck to my original plan or I would’ve been in the red. Luckily, I’m still net green and already put this trade past me. No sweat.
It seemed the last few trades were short biased so I took this trade as kind of a hedge that the market might continue up. This is sort of a triangle formation that re-tested that resistance 3 times. I was hoping for a quick breakout where I could take my full position off at 1x risk but after I was triggered in it took me out in the same day. Oh well.
Last up is a stock I have been day trading and tracking for a good part of 3 months now. I know this stock pretty well and I entered on feel more than anything else. I guess that’s how veterans trade a lot when they have been watching the same stock move day in and day out for years. I just knew it was a good opportunity at a swing. Quick $3 per share profit and I am a happy man.
Well those are it for now. If anyone has any questions on the strategy or how I decide to take profits/partials just ask. It is no big secret and I have been using it successfully now for a good part of a year.