Thursday, October 30, 2014

Closed RWLK. 22.37% Winner.

In a month filled with a lot of big winners. This one has been the biggest.  This was a buy one day sell the next morning trade.  I know from past trading that RWLK has a tendency to fade the day after a big move.  So I got my gap and I sold into the strength $31.73.  So I missed the fade throughout the remainder of the day.

Entry: 25.93
Exit: 31.73  +5.80  +22.37%  +6.6R


This trade worked well because my buy was an A+.  I bought it while the days trading range was s still a very tight doji after 4 progressively smaller down days.  Because the trading range was so tight, I was able to put decent size on the trade and only take a small risk .25R.  When you see that type of action after a move it frequently signals a that the sell off is ending and momentum is coming back into the market.  I sold RWLK high because I am familiar with this stock and could see that it made very few multi-day bullish moves.  The ones it makes are powerful, which is why I felt comfortable buying.

2017 -- Note:
In retrospect, I would no longer consider this a A+  setup or trade.  As An Ipo, this had not setup above opening range push, which means its a pull back setup, in a medical device stock, which tend not to perform well as IPOS. ..

As it turned out, I bought a position in a low float stock that got a push and then sold close to what would be the highs of this stock:

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