After spending many, many hours on Jeremy Newsome's RealLifeTrading website and Youtube channel, I've come up with a strategy of my own and will begin documenting each trade for learning and adherence purposes.
My Rules: - Only Buy during Accumulation or Distribution phases - Price MUST be caught between my S/R lines, mapped using the Daily chart - Price MUST have bounced off of this support at least TWICE already - My stops will ALWAYS be 1R, and I will begin trailing my stop anytime a profit of 2R is reached - I may exit early where I see fit in effort to minimize losses - 3 open trades at any given time is my max - I must document how long the trade should last and why
To Jeremy....
Simply, thank you.
~ Myles
Trade closed: stop reached
⋅
Stop was hit at $30. Down 1R on the testing of this strategy. May revisit MGM if any bounce evidence appears in the next few candles.
You also have to consider fundamentals. Hope you had a close stop say at 30.00. With the big shooting, it may break to the downside of 30 as investors question whether Vegas traffic will take a hit in the months ahead.
Thank you for your advice, I really appreciate it. I live in Vegas so I've got a good feel for the mood around here lately (before, during, and after) the shooting. The community is strong and refuses to be deterred by fear. Things have returned to normal as far as I can tell and honestly, I hope to see people taking advantage of the lower prices on travel due to what happened. I won't get opinionated on the incident, what happened here is very sad, but it will only make things more secure moving forward.
hammerup
⋅
@slepianm, I've been to Vegas 30-40 times in my life. Had a gambling problem, but went to GA and beat it. We still come down from MN about once a year, love the town but I don't gamble any more. The shooting won't stop us from coming back unless it turns into a weekly thing, but that is not going to happen. Still, the "investor perception" is to "shoot first and ask questions later" (sorry for the pun), but eventually all will be forgiven and the stock will move forward. It MAY spend some time below 30 until it earns it's way back up. Stops are designed for saving your capital on a bad entry..
Curtis
⋅
Nice trading plan. Jerremy does a nice job. I have been following him since he first started at another company. I got in with options on the 10/11 open at $30.40. That is a very colorful chart is the bottom of the red band your stop. Were you stopped out?
My stop is pretty shallow, at $30.00. I’m pretty limited because 1R for me is only 20 bucks. Thankfully I wasn’t stopped out today but it was awfully close.
I believe the announcement of the lawsuit against MGM today was part of the push lower, but I’m hoping things turn around tomorrow.
The “R” refers to a unit of risk which is based on my trading account value. It’s a technique that I believe Jeremy Newsome created. You should check out his website where he has a video that explains this concept. Here’s a link to the video.