Hit target level and reversed as expected. Next it will find support near USD45-47 level..
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Showing posts with label Trade Recovery. Show all posts
Showing posts with label Trade Recovery. Show all posts
Friday, July 2, 2021
Tuesday, June 29, 2021
NIO - Repair a losing trade back to health.. Plan and Action. (Follow-up update 29th June) - Great Success!
Updated recovery plan is a success
29th June NIO Daily Chart...
Past postings on recovery plan:
Friday, April 23, 2021
NIO - Repair a losing trade back to health.. Plan and Action. (Follow-up update)
Previous Post on the journey to repair a losing stock back to health. Click below..
Below: 24April 2021 Recovery Progress Tracking.
So far, the stock has moved up and met the execution plan @USD37 and @USD39.50.
We are on the last track to buy @USD45. This will help to recover the loss of USD700++ to
a estimated profits of USD250 if price goes up to USD47.
Nothing is for sure until it's happen. Meanwhile, stay relax and patience, let the Market does it
job while I monitor the progress with a cup of coffee..
Updated EOD chart on 24April2021 below
Past post of how I repaired a trade which was losing the game. SIA.
Do click below the link and learn how to dot it. It will be helpful at time when you still
want to hold the stock for longer period and need to repair the stock back to health asap
so that your heart beat can be steady.
Cheers
Happy Profitable Trading 2021!
Friday, April 16, 2021
Saturday, December 5, 2020
How to repair a losing trade back to health?
The above scenario is based on worst case when a stock was purchased at the highest point 0f $0.39
where it started to trade to the downside. This illustration is subjective to interpretation, it takes
guts and years of trading skills to perform the recovery, you are not to average down as the stock
price goes lower which is what most unskilled traders will do.
In fact, the best loss is the initial cut loss level that you have set before you enter the market to
buy.
But If you have overlooked or assumed that you just need to "buy and forget" then you will be
very sorry soon.
IN order to reduce the losses, there are steps to be taken to make sure that recovery is possible, you
need to identify that the stock is longer going lower and started to move sideway, as the stock starts
to move up the trend, you make the 1st recovery purchased as shown on 9th April when you see a
bullish Green bar (almost closed near day high), the quantity to buy has to be 3 times higher than the
initial lots size. Subsequently, as the price move higher, execute the 2nd recovery purchased as shown
on 6th May at $0.26 with 3 times higher than the initial lots size.
By averaging up the price, you will have a positive outcome as shown below.
Base on my study, with this strategy, you can reduce the losses significantly and provided you have
the guts, capital and trading skills to recover a losing stock over a period of time.
Personally, initial cut loss is the best loss... and I always traded small lots size in the initial entry.
The highest risk is always the initial entry where you do not know where the stock will be heading
even after extensive study of the financial ratios and charting. The market will do what its need to do
and we have no control over it. What we can do is to limit our losses with trading plan.
so if I am wrong in my initial entry, I can still exit with small losses quickly, but if I am right on the
entry, the next buy will be heavy when the price moves higher above the breakeven level and I
will keep on adding more positions up the trend. With averaging in an uptrend, my average per share is
still lower than the market price.
In this way, there is no fear to buy high price and hope for higher price as the stock continue to
rise until it triggers the profit protect line to exit the trade.
Take example of the current holding of SIA stock.
Refer to the below post on how to start small and finish well..
Start Small and Finish Well
Other ways to recover losses in a trade.
1) If there is stock call or put option (warrants) to buy as a protection insurance.
2) Trade another stock which is trending up or down. Trade in the direction of trend to generate
profits to cover the losses from the losing trade.
3) To apply what I have shared in this blog, average up when the stock starts to recover.
You are the master of your own habits and trading techniques, find your own way to resolve the situation back to health.
Don't sit on it.
You will be better off doing something with small and calculated steps towards recovering from losses.
Happy Profitable Trading 2020
Welcome 2021 with massive action.
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