Here’s One Way To Capture Potentially Profitable Situations
Bank of America cut
ratings on FD, KSS, MAY, ANN, LTD and TJX. FD? B of A downgraded FD?
I had an overnight position on FD.
12:18:02
(From TradersWire 12/21/2004)
Federated Department Store (FD)
has tested a support line, and it is nearing yesterday’s high. Long FD if it
takes out 55. Risk 0.5-0.75. FD is trading at 54.85, up 0.20.
Our protective stop is 54.51- 54.35. Some of you might have stopped out because
the stock opened at 54.50. But, it never traded below 54.35. After consolidating
at the day’s low, FD staged a strong recovery rally. Shortly after 10:40, the
stock covered our initial risk, so we decided to take profits.
10:42:06
Follow up on FD
It has hit our target (55.70). Sell the rest, or raise your stop.
Tight stops are important for daytrading. But, if
you are swingtrading based on daily charts, make sure you give enough space to
capture potentially profitable situations.
Have a productive afternoon session!
If you have questions, feel free to mail them to me.