Today's "pretend" trade on $ARO would have likely been one of my best executed trades. I followed my rules and it paid off nicely. I know not every trade will go like this but this is the basic rundown of it.
Remember... this is not an actual trade, only a "pretend" or paper trade.
There are two possible ways that this would have taken place depending on when I entered. But the results are very similar.
Option #1: The Morning Spike
In this option I would have placed my entry right at the opening and road the momentum within the morning spike. The spike quickly rose to the 12% gains area and I would have placed a hard stop loss at the 5% gains level as it climbed. Once the stock reached and passed my target of 10% I would have taken profits as soon as it began to turn red. This would have likely had me exiting with roughly 9% to 11% gains on the trade.
Option #2: The Bounce Play
This is the more likely play that I would have taken part in. Mostly because at time the market opening is taking place I'm in the middle of getting my kids up and out the door for school. I would have entered around the $0.73 range and fairly quickly placed a hard stop at the 5% gains level around $0.72. I would have then let the trade breath through the day and close out the trade near the EOD with roughly 11% to 12% gains.
Of course it goes without saying, that if I was dealing with a larger account I would have likely played both and doubled my gains.
Please feel free to comment.
Good post, i want to start trading myself have absolutely no clue about trading but the way this was laid out made some sense of it all. Thanks :)
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