It seems like I always forget to mention the volume as a very important factor in trading. And I think it is so important that I assume that everybody knows. However my few friends I write this for, ( and for me personalty to keep reading it from time to time to keep me in check) , may not put enough attention to this.
Initially SFUN broke above major short term resistance $7 , 7.20 area on increased volume. After a better then expected earnings ( estimated 0.13 and actual 0.21 EPS) .
I took it long 7.30 against 7.20 support at first, watched it all day tick by tick how it was trading with time and sales prints, initially trade was positive, went long 7.30 went up to 7.40 , just to see it next day on Friday dropping quickly into my risk stop level 7.20 , got stopped 7.17. Then I Re-enterd couple of times
SFUN stop loss No1 at 7.17
SFUN took long 7.09 with very tight stop the triple bottom created intra day
SFUN stopped out with 2 cents loss, not holding the triple bottom, knowing that from here may severally drop much lower , since obviously so far the 7.20 is not holding, and knowing that I can re-enter if this changes and trades upwards again. Not letting to have big loser is prime though on my mind, and writing about it just reinforces my discipline. The re-entry option is still in plan, since the main idea I am trading this stock is still valid, and the possibility for SFUN to stay above 7.00 after the higher volume break out on Wednesday Feb 17 is still intact.
SFUN re-entry long 7.11 again risk LOD
The watch list for Friday the 20th did not give me any good entries My Favorite Set Up did not occur no entries that I would have felt comfortable with so I stayed focused on this SFUN trade. It may look like I got stubborn, but the general long swing idea is still unchanged as long as SFUN holds 7.00. The drop towards 7.00 was on very low volume after the break above 7.00 on higher volume. I may be totally wrong , SFUN may make new monthly low from here, so I play safe with very limited risk and size I can afford to lose. Up side may easily shot up towards $8 which makes descent risk vs reward
I can not control where the stock can go , but I can control my action upon the stock movement. This is the only one business that depends only on myself , my decisions my action, my responsibility, and there i nobody else I can blame if lose big. So lose small, stay in business rule number 1.
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SFUN initial entry day loong SFUN second day of the trade
If on Monday doesn't give any positive close, or increased volume , or it doesn't show strength I will abandon this long idea.
I may not even trade anything else until this trade is completed , weather winner or loser. Trading is a marathon not a sprint.
Writing about a loosing trade and I handle is what mostly improved my trading. The wining trade is just a winner, no harm could be done. How I handle the losers I think is way more important. In every trade I get in , I consider to may be a loser and I do all I can to protect my capital from losing trade.
Salute
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