Wednesday, April 25, 2012

AMGN: Post Triage

4-15-12- AMGN: Stopped out
This was  a bad trade all the way the way around.  Went for -783 in violation of the  2% rule in execution. My buy stop was not high enough So I was stopped in without a breakout.  I set a stop, with stop limit. at 66.10.  Remember: stop limits are for offense, Stops are for defense.   My stop limit was gapped, so I pulled it.   It cost me an extra .60 cents causing me to violate my 2% rule.

This chart still doesn't look like a break down or a break out.  It's probably closer to a break down.  But had I taken a smaller initial position, I could have had a wider stop.

4-25-12: what might have been:

So the underlying theory was correct.  As it hit 70 today and closed near a high.   I bought too high without a real breakout  and got sucked back into the channel.   A wider stop would have worked.

Anyway,  I think I can learn from watching this.  If it continues to run.  I can adjust my entries  to a break outs, or determine whether to look for an entry on support of the channel.  A buy at 66 would be looking great right now.  Yet that's where I got stopped out.

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