I am taking a break from shorting airline stocks to perform this trade.
I am going with an equal TP/SL trade at 4%. However, due to a large upside, I will be modifying my strategy.
I will be risking 4% to take 1/3 profit at 4% and will then move my Stop Loss to Break Even to remove risk.
Instead of closing the whole trade for 4% profit, I am taking a small profit and moving my SL to keep open the possibility of hitting targets 2 and 3.
Possible Outcomes:
Hit SL = Lose 4%
Take Profit 1, Move SL to BE, Hit BE. = Gain 1.67% Profit
Take Profit 1, Move SL to BE, Take Profit 2, Move SL to 4%, Hit 4%. = Gain 5.34% Profit
Take Profit 1, Move SL to BE, Take Profit 2, Move SL to 4%, Take Profit 3. = Gain 10.67% Profit
This is not a small position trade, otherwise, it won't be very profitable. No leverage, less risk, but more exposure.
I used to be a trader that would use high leverage and risk a percentage of my portfolio in hopes of big gains, but I have found this strategy terrible for me. I wouldn't consider myself a trader, but just a smart investor. Most investors look to make 6-12% on their portfolio each year. Others look to double their money in a short period of time. One strategy is HIGH risk and one results in small gains over time. Neither is right for me. The goal of my strategy is to simply make 1-4% of your portfolio each month. If you make just 1% a month you profit 12% a year and don't have exposure to big crashes in the stock market because you are making short term investments with a stop loss. 12% a year is considered very good for an investor. If you manage to make 3-4% a month however you are much better off. The end goal is to consistently make 20%+ per year every year. This is achievable and leads to great wealth. And if your portfolio gets big enough you can then invest in long term investments as well.
Best of luck,
Andrew
I am going with an equal TP/SL trade at 4%. However, due to a large upside, I will be modifying my strategy.
I will be risking 4% to take 1/3 profit at 4% and will then move my Stop Loss to Break Even to remove risk.
Instead of closing the whole trade for 4% profit, I am taking a small profit and moving my SL to keep open the possibility of hitting targets 2 and 3.
Possible Outcomes:
Hit SL = Lose 4%
Take Profit 1, Move SL to BE, Hit BE. = Gain 1.67% Profit
Take Profit 1, Move SL to BE, Take Profit 2, Move SL to 4%, Hit 4%. = Gain 5.34% Profit
Take Profit 1, Move SL to BE, Take Profit 2, Move SL to 4%, Take Profit 3. = Gain 10.67% Profit
This is not a small position trade, otherwise, it won't be very profitable. No leverage, less risk, but more exposure.
I used to be a trader that would use high leverage and risk a percentage of my portfolio in hopes of big gains, but I have found this strategy terrible for me. I wouldn't consider myself a trader, but just a smart investor. Most investors look to make 6-12% on their portfolio each year. Others look to double their money in a short period of time. One strategy is HIGH risk and one results in small gains over time. Neither is right for me. The goal of my strategy is to simply make 1-4% of your portfolio each month. If you make just 1% a month you profit 12% a year and don't have exposure to big crashes in the stock market because you are making short term investments with a stop loss. 12% a year is considered very good for an investor. If you manage to make 3-4% a month however you are much better off. The end goal is to consistently make 20%+ per year every year. This is achievable and leads to great wealth. And if your portfolio gets big enough you can then invest in long term investments as well.
Best of luck,
Andrew
Comment:
And just for documentation sakes, I have not yet made an entry. $41.50 is a placeholder price for the chart. I will update when I enter. Somewhere between $40.70 and $41.50 will be my buy range.
Comment:
For entering the long, it will be best to watch bitcoin and see what it does. I will be looking at the 5m, 30m, and hourly. If I see bearish movement, I will look for lower entry. Ideal entry would be 41.30
Comment:
BTC chart LTC chart. You can tell that Litecoin is just waiting on BTC to break out of its channel. Will take a small position if bitcoin breaks above
Trade active:
$42.11 Entry Price, not what I wanted, but BTC broke resistance and I will look to take the 4% target price from $41.50. Profit is profit.
Comment:
Target 1 Hit
Comment:
Target 2 Hit
Comment:
Target 3 Hit, nice trade
Comment:
Bought some back at 47, 50 just looks like a magnet. So far so good at about 49.50
Comment:
Sold it at 49.80, W