Quote from RAMOUTAR:
See my replies to your post (in the quote above), starting with "RAMOUTAR SAYS". I have also enclosed (below) a scaling strategy for a swing that I'm in now. You'll see what I mean when I adjust not EST, but add E, and adjust ST, feel free to refer to the QCOM daily when looking over the journal.
QCOM (scaling swing trade journal)
ST=short term (profits taken on failed patterns)
LT=longer term (profits taken at target on continuing patterns)
6/18/03
Bot 500 @ 34.70, stop at 34.10 ($ .60 risk) next entry 35.90 (or a target if pattern fails, $1.20 reward) LT target $38.72
risk= .60, reward = 1.20
I will use ST target if pattern fails. If pattern continues I will continue to average up and use LT target.
6/19
Bot 500 @ 36.50, new average price = $35.60 stop at $35.08 ( .52 loss) new ST target & LT target are the same, $38.72
risk= .52, reward = 3.12
7/2
Bot 500 @ 37.08, new average price = $36.09
raise stop to $35.24 (.85 loss) ST and LT target reduced to $38.18 (re-evaluated supply on daily)
risk = .85, reward = 2.09
7/3
I raised stop to $36.58 for 1,500 shares , target still at $38.18 will pick up last 500 at $37.90 if stock trades higher and takes out highs from 6/19. 7/1 and 7/2
On Monday, if I buy last 500 shares at $37.90 my avg cost will be $36.545. My stop will be raised to $37.15.
On 2,000 shares, if stopped, I get $1,220, if target is reached $3,280.
If stock doesnât trade above the three highs, Iâll hold at 1,500 shares and my average cost is $36.09 and stick with $36.58 stop a $735 profit.
This is one of my swing trades. I provided to you as an example. NO FEAR here, I've planned for the worst. PM me with more question if you need blt! Happy4th.
