Friday, November 9, 2007

SMRT Perfect Execution

Had an amazing trade today with SMRT. Right after I went short at the open and realized it was wrong. I sat back and looked for a strong stock going against the crowd, and I found one.

 

Got in at 6.51 Stock increased 1% and I unloaded 25% of my shares at 6.58 at that same time I cut my risk in half by raising my stop from 6.40 to 6.45. Stock rallied another 1% and unloaded an additional 25% of my shares at 6.65 At this point I raised my stop to break even to give myself a risk free environment to work with.

 

I let the rest of the shares ride while trailing my stop behind it. For every 1.5%-2% increase in price I raised my stop 0.5%. When it hit the R2 line at 6.90 I was more aggressive with my stop and raised it to 6.80 because I didn't think it'd break an R2 line. Volume was declining and RSI was weakening so I decided to be aggressive. It ended up falling to 6.80 after it tried for about an hour to break R2 and I got stopped out at 6.79

 

smrt trade chart

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