tips / input on managing this position

[c.chugani]

trade date: 5/8/11

vehicle: common stock

direction: long

A) entry price @ €88.5

B) stop price @ 61

c) risk on trade: €5000

D) position: C / (A-B): 180 shares

E) committed: (A*D) = €15.930

F) first exit 120 shares @ €107

G) second exit 60 shares @ €116


My questions are:

what would you recommend to improve the expectancy of this trade?

Is scaling out worth the lesser potential profits?

If stock hits first exit price (€107), would you bring up the stop level and risk being stopped out before the stock continues in your direction?

How would you improve the risk / reward ratio of this trade?

Thanks for your input.

 

[c.chugani]

82 views.. anyone?

Resources and links to other websites regarding expectancy / trade management and position sizing would be highly appreciated.

Thanks in advance.

 

[J.Joseph]

I'd like to take a look on my own charts. What stock are you holding?

 

[c.chugani]

Quote from J.Joseph:

I'd like to take a look on my own charts. What stock are you holding?

Trades on the Spanish Exchange.

Ticker: LYXIB.

 

[noone3]

Have you tried using a trailing stop?

 

[c.chugani]

Quote from noone3:

Have you tried using a trailing stop?

I have had cases over backtesting period where underlying has decreased 30%+ from position high and later gone to resume the trend to surpass that high.

In the case of using the trail stop and it getting hit, at what level do I reenter when price comes back and resumes the original trend?

I ask this because the reentry price level will always be higher than my initial entry price level.

Cheers.

 

[murray t turtle]

Quote from c.chugani:

trade date: 5/8/11

vehicle: common stock

direction: long

A) entry price @ €88.5

B) stop price @ 61

c) risk on trade: €5000

D) position: C / (A-B): 180 shares

E) committed: (A*D) = €15.930

F) first exit 120 shares @ €107

G) second exit 60 shares @ €116


My questions are:

what would you recommend to improve the expectancy of this trade?


If stock hits first exit price (€107), would you bring up the stop level and risk being stopped out before the stock continues in your direction?

How would you improve the risk / reward ratio of this trade?

Thanks for your input.

===============

Senior CC, nice English writing.
If thats a Spanish ETF for banks, Citigroup Bank/sector is bear/down trend ALSO ;
sell it as soon a possible .The Spanish Short banking ETF has done much better, past year...

If that info above is not correct, sorry Senior. IF it follows SPY[nyse, good benchmark], sell based on your descretion & 20 dma,50 day moving average.

If its a gold stock,gold ETF, assuming the monthly parabolic stop & reverse does not say sell, i tend to scale out of a trend,LATE /very late. .Unless trend an excellant price/volume trend , in most every way trend; sell sooner with discretion.

If thats a silver stock/ETF ;
sell as soon as possible. So really it depends on what sector that's in..Thats wisdom

 

[c.chugani]

Quote from murray t turtle:

===============

Senior CC, nice English writing.
If thats a Spanish ETF for banks, Citigroup Bank/sector is bear/down trend ALSO ;
sell it as soon a possible .The Spanish Short banking ETF has done much better, past year...

If that info above is not correct, sorry Senior. IF it follows SPY[nyse, good benchmark], sell based on your descretion & 20 dma,50 day moving average.

If its a gold stock,gold ETF, assuming the monthly parabolic stop & reverse does not say sell, i tend to scale out of a trend,LATE /very late. .Unless trend an excellant price/volume trend , in most every way trend; sell sooner with discretion.

If thats a silver stock/ETF ;
sell as soon as possible. So really it depends on what sector that's in..Thats wisdom

It tracks the Main Spanish Index (IBEX-35).

I've not been stopped out yet due to the wide stop.

However, taking the other side of the trade would have been the right way to proceed.

Cheers.