Yes but you look at IWM how much of your gains would have been losses when price recently went from 202 to 193? If you bought 100 shares at the break of 200, on Friday you would have been up $200, but on Monday would have been down $-700 and no doubt stopped out before price made a full recovery the next day. This will happen repeatedly.
THIS STRATEGY, ???
- Thread starter MISSSNP
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Yes but you look at IWM how much of your gains would have been losses when price recently went from 202 to 193? If you bought 100 shares at the break of 200, on Friday you would have been up $200, but on Monday would have been down $-700 and no doubt stopped out before price made a full recovery the next day. This will happen repeatedly.
Do you think IWM is trending upwards? (to me it looks like it's moving sideways)
With IWN why would I have been stopped out?
Where would you have put a stop and why there?
Mine would have been under the last swing low.
As long as my losses are small and under my risk criteria of 1% of my account it would have been an acceptable trade.
$202 to $193 is only a 4.4% drop. Most swing traders give trades a little more room to breathe than that.