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How to handle a wild trade after a good entry.

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Ondrej Pohorsky asked 7 years ago
Hi Patrick, I have another newbie question. I am not sure where to put my stop-loss right after entering the trade. For example yesterday, I entered CIFS from the Key List at price $44.30. There was volume burst on hourly chart (please see attached image). One hour later price dropped under $44.30 again so I panicked and sold all shares at break-even. Is it right attitude or should my stop-losses right after entering trade should be bigger? Second thing is - what if CIFS will go through $44.30 with big volume again. Is it good still good setup anymore? Link to chart Thanks kindly for your answers. Have a nice day, Ondrej
1 Answers
1 Vote Up Vote Down
Pat Walker Staff answered 7 years ago

Good day Ondrej,

Great to hear from you! Happy New Year!

You asked a GREAT QUESTION. So let's analyze the chart. I have enclosed a daily and hourly chart. Your analysis is perfect. More importantly, your reaction to the price action is excellent.  You entered properly and had the DISCIPLINE to get out; that's not panicking, that's good trade [and self] control. Most folks struggle in the area of "control." Well done.

Right now, given that bad price bar yesterday, we'll need to wait for a cleaner entry on the day chart.

Take care. Have a wonderful day. Thank you for being part of the "team!"  CIFS daily and hourly charts enclosed.  ~Pat