Why The Second Entry Can Be The Best Trade
Sometimes stocks move against you.
Your protective stops trigger, and you are out of trades with small losses. Some
of you might scream a few obscene words, and move on to the next stock. But,
wait.
Las Vegas Sands (LVS) was pulling back from its intraday high and testing
its 20-period EMA (1-minute chart). The RSI began to improve, in fact indicated
a positive divergence, so we bought it at 9:48 AM. Unfortunately, LVS did not
move the way we wanted. It decided to hit our protective stop.
10:11:47
(From TradersWire)
Follow up on LVS
The issue hit our stop.
We did not give up on the stock. Shortly after stopping out of the trade, LVS
formed a bullish hammer just above the 20-period EMA on the 5-minute chart.
Notice, the stochastic was indicating the reverse divergence. We bought it at
the market.
10:15:15
| Action | Symbol | Order Type | Setup | Stop | Current Price |
| Buy | LVS | Market | Pullback | 47.98 | 48.35 |
10:21:11
Follow up on LVS (10:15)
Sell half to lock in 45 cents profit and move stop to breakeven.
10:31:57
Follow up on LVS (10:15)
Sell the rest to capture 1 point gain.
Have a good afternoon session.
If you have questions, feel free to mail them to me.