Before I take on any position, I always plan a route of escape so I won't get trapped in a losing trade... the reason I jumped on the RSX so quickly yesterday is because I knew if we closed higher yesterday, that my risk would be a break of the lows made on the previous day... that was 15.21, so my risk was only one full point, a low risk for a potentially high reward, so I took it... and that's where my stop is placed right now... if I didn't have any RSX right now, I would buy a little bit on this minor pull back we have right now and add if we go lower, using that low day low for my exit stop... realize, I'm not telling you that this strategy will make any money, I'm also clueless so I'm not giving market advice, but I'm merely sharing with you my trading strategy for that particular market... the chart pattern itself looks very solid to me, so I thought it was well worth the risk, the same for the banking group, banks were getting ready to move higher, I only needed to wait overnight for that group to break out, provided we close firm today... the exit stop for the banking group is at the same previous day's low...
GZ |
