LBM2 -
Here where my thoughts on GSS. I know you asked H3, but I joined you with a purchase in Mid-March, so I will give you my thoughts.
Let's not let H3 off the hook on GSS though, since I am interested in seeing his thoughts as well.
As I have posted before, I was watching the symmetry in the GSS pattern (ie the left side of the chart looks alot like a mirror image of what is shaping up on the right side for the July 2008 to current periods).
If we start with the rise from the bottom in Dec of 2008, I started with a resistance line (Dashed Line) using the Sept 2008 top.
I expected some selling in this area, so my buy "targets" were the 38 and 50% FIB retracement areas. (1.12 - 1.15 area). I entered the trade at 1.15 and 1.16 in Mid-March using the Fib point and CCI/RSI indicators.
At that point, my stop was the 61.8% retrace (.95). This will be different for everyone based on how big the position is/etc. I also factored in that GSS can swing during the day.
My target at this point was set at a retest of the upper resistance (Dashed Line 1.77ish)
During the period, the triangle formed and then broke out. At this point I revised my sell target to 2.25 based on the triangle pattern. My stop remained the same; however, in hindsight, the smart thing to do would have been to raise my stop up to my buy price of 1.15.
Once we hit the initial resistance (1.77), I sold 1/4 of my position. Once the stock cleared 2.00, I did raise my stop for the remaining 3/4 position to the resistance level of 1.77.
At the 2.25 target, I sold 1/2 of my remaining position. I am now using the yellow uptrend line as my stop for the remaining shares.
My hope is to repeat this entire process using the next resistance level (upper dashed line 2.70ish).
As you can probably tell, none of the above is rocket science.
What works for me is to have objectives and targets before I hit a trade - I believe part of this is because I like the "If I read this correct, this should happen" approach. It gives me a chance to go back and see why I thought something or (just as important) why I missed something.
It took me awhile to "find" my style, but once I focused on trading in a way that is consistent with my style (ie - I like to plan, am always early - but don't mind waiting) things became much easier and my success rate improved.
I have heard this stated before and I do believe it - "Making money in the market is not that difficult. Keeping it and not giving it all back in one really dumb trade is what most people should focus on."
Again - just a perspective. Good trading to you.
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