Hiya,
I hope everyone is having fun trying to look for the Power Plays. I just thought I'd share my experience of my first trade.
Well, it actually turned out to be a non trade. Yesterday (14th January) I looked on the lists and saw FXPO on the short power play.
It was just under the moving averages, in fact just bounced off a moving average. It looked like it was sort of in a trend and so did the sector.
I did my calculations and one slight error threw it all out. The previous low was 41.5 but instead of setting the entry at 40.5 (as it was a short) I set it as 42.5. As my stop was 48.25 and my target was 24.75, it fit within the 3:1 risk ratio.
However after setting it up last night ( I did have to check the details with the book on how to set it up numerous times) I thought I would look at it this morning.
It seemed so obvious on review that the entry should have been 40.5. But it being there meant my risk reward ratio was 2.03:1 meaning no trade.
Luckily for me my entry point had not been triggered. In fact it touched it but didn't go through, so I could cancel the trade.
So if you see a trade. Check your figures, go off and do something else for 30 minutes and then recalculate your figures with a fresh pair of eyes.
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My first trade i placed on 3IN
ReplyDeleteI`m playing powerplay short:
Entry: 91.95
Stop: 95.65
Target: 80.40
Risk:Reward 3.1:1
Activator day: 12/01/09
Trigger day: 13/01/09
Now Running ...
This stock is also a descending triangle pattern. The normal play for this would be to look for the break of support at 80. This looks like a good setup. I dont think this will happan, as the target would need to be around 50, and unless there is another major crash it would be very rare.
ReplyDeleteNice spot on the powerplay, I bet you cant wait to get to day 7 and move your stop loss.