Small Cap Pharma Trade: CRBP
High risk with these micro-cap names ... but it looks good here.
Comment:
Target 1 hit. Trimming some here letting the rest run:
Comment:
Someone asked me how I arrived at this target.
1) Luck. Price could have easily hit 1.65 and I wouldn't have made much of a profit on this trade, as my initial target would not have been hit.
2) Target taking is probably the most difficult aspect of trading execution, IMO. It's a core component of trade management. If you don't have a plan to exit, you'll find yourself not knowing what to do when the market does something you were hoping it wouldn't do.
Here is a simple way I arrived at my first target (1.70) for this stock:
I took half off at 1.70 and the rest was trail stopped at 1.50 (The 1.50 trailing stop was rule based - I tighten stops off sharp reversals. This helps limit how many trades I take that go from green (in profit) to red (loss). I want to limit this as much as possible. However.. sometimes we have to let trades go from green to red, then back to green. Giving markets room to shake out random noise is equally important, arguably more so. This is the art of execution and balancing this is never easy.
1) Luck. Price could have easily hit 1.65 and I wouldn't have made much of a profit on this trade, as my initial target would not have been hit.
2) Target taking is probably the most difficult aspect of trading execution, IMO. It's a core component of trade management. If you don't have a plan to exit, you'll find yourself not knowing what to do when the market does something you were hoping it wouldn't do.
Here is a simple way I arrived at my first target (1.70) for this stock:
I took half off at 1.70 and the rest was trail stopped at 1.50 (The 1.50 trailing stop was rule based - I tighten stops off sharp reversals. This helps limit how many trades I take that go from green (in profit) to red (loss). I want to limit this as much as possible. However.. sometimes we have to let trades go from green to red, then back to green. Giving markets room to shake out random noise is equally important, arguably more so. This is the art of execution and balancing this is never easy.