This Is Why You Should Set A Time Stop On Your Trade
The Dow Jones Industrial
Average is breaking down below the lower boundary of a trading range,
and it is recording the worst level of the year. Notice the index is now testing
the 50% retracement level.
(Charts courtesy of QCharts)
11:52:23 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
SMH | sell stop at 31.19 | pullback | 31.34 | 31 | 31.22 |
TK |
Semiconductor HOLDRs (SMH) was struggling
to take out the 38.2% retracement level (Tuesday’s high – Today’s low) as you
can see on the 5-minute chart below. The stochastic was also in the overbought
zone, so I placed a stop order to sell at 31.19. The order was filled
immediately, but the issue began to form a range. It was also lunchtime. I may
have to hold on to this position forever. I decided to scratch this trade.
12:14:23 (from TradersWire)
Follow up on SMH
Scratch trade.
A good trade works out quickly. If it is taking too long, it is time to exit
your position. Â
If you have questions, feel free to
mail them to me.
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