Monday, October 6, 2014

Closed PANW

This trade pretty much exemplifies my experience with the market over the past few months. Very promising B/O and then complete failure of the move.  I saw the weakness and got out.  Not fast enough to preserve the 4R  profits I had on Friday but I got out with a 1R profit nonetheless.



Entry: 99.79
Exit 1: 104.03 
Exit 2: 102   
Exit 3: 101.19  1R

There's been a lot of talk by some self-proclaimed guru about how great his call on PANW.  Wait for confirmation at 101-102 and you have a 90% success rate.  Except you don't. In this market environment, such an approach does not work. There is no continuation.  I made money here because I anticipated the breakout and then sold into it-- I should have sold more on Friday-- but this is how you make money in these types of conditions.

How do you anticipated a breakout?  It is not that difficult.  Find strong stocks.  check the trend intensity and buy them while they are quiet.   


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