Earnings is monday AMC but so I am literally giving it a monday to hopefully move enough to hold a bit . 1.5 R gives me 1/4 carryover, 1R gives me a 1/6 , anything under that is just going to be sold . I have done the math on this and it allows for a 4 R gap down unscathed ... if earnings reaction bad ...
In my opinion 1.5 R , sell 3/4 , hold 1/4 is the best , holding 1/4 your balance still needs to go 4X 1R to equal 1R , so I sort of feel like its feels like a good bare minimum threshold level to carry over a responsible amount whereas 1R could work but then your balance needs to move 6R to equal 1R . For me , personally , I think that I will gravitate to 1.5R sell 3/4 , hold 1/4 , as a more typical procedure but still figuring it out ....
Time for a hike for me now , have a good weekend ~
QQQ note :
Maybe next week we might actually break up too , back in the trading range breakout mode on QQQ again for now . So far with this multi week range , Al brook 80 % rule has really been spot on , that being that 80 % of the time trading range breakouts fail to have follow-through looks like we might close at the top again today , which would mark the third attempt at a breakout , none of the breakouts up or down have worked so far ... will this one be the 20% or the 80% , guess its better to expect the 80% but man would it be nice to get the 20 %
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pardon me I had another look at QQQ and I would say this is 5th attempt to breakout of range
Trade closed manually
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ANET needed to go at least 1R to hold some per my plan so just got out in final minute today ... I never hold positions with that are not de risked through earning's now . But I figured it was worth a try ...
and just now what do you think? Earnings of Anet were positive
NAK1987
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@Pastig, I really liked the earnings history , but one thing I have learned with earnings and sales is that although I want to see growing earnings and sales trend on the stocks I trade , I think that the reaction is more important and usually when there's ok earnings or positive but the stock drops the reason is related to future outlook statements .
In the past I have been on the " But earning's were good , it just being manipulated !!" team, ect ect , but now I keep things simple and focus more on the reaction to the earnings. And if the reaction was is bad, which in this case it is, I take that over the actual earnings report ... Don't trade the earnings report , trade the reaction ...Also this is a perfect example why unless you have a de-risked position , holding through earnings is the equivalent of a casino play . I was hoping to get at least 1R which would allow me to hold 1/6th of my shares or even better 1.5R which would allow me to hold 1/4 but we did not see that move so I sold . This is off my buy list for now .. I think it will probably need some time to recover after this ...
Pastig
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@NAK1987, thank you. I hope now it will go up again from here
NAK1987
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@Pastig, You bet , yea thats a non zero possibility lol :)