Stopped out of LUM

I started tightening my stop as it was going up and to account for the risk/reward ratio. Once I saw that it was having a hard time breaking 1.81 (target was 1.85) I started to raise my stop loss to account for the lower reward. I got stopped out 1.72 for a -1.71% loss, not bad considering my target was 5.71% gain.

 

I don't care if the stock hits my price target now. I followed my plan, stuck with it, and executed it based on my goals. I have a small loss compared to my potential profit. I'll start looking for the next opportunity now.

 

The Blue box represents my entry time and point, Black line represents my entry point in relation to the action, Red line represents my stop loss point and Green line represents my target. Now that I look back at the chart. I can see why it had a hard time breaking 1.81 because it was yesterdays general low of the day (it's not being shown here, I looked at yesterdays intra day).

 

Traded LUM

I bought 300 shares of LUM at 1.75 this morning. It fell to 1.73 and bounced to 1.75 which is a very strong key support level. I wanted to wait for it to test those levels and for the stock to determine the bottom and see how strong those levels really were. Turns out they were very strong and I got in at the strong support level of 1.75 ( blue box represents entry point and purple lines are support/resistance)

 

It's hitting some resistance right now at around 1.77 which isn't a problem. I think it'll be a good psychological boost if it breaks these levels which could produce nice shot in the air once it peaks these levels.

 

My exit point is at 1.66. For my system and my plan, this is all I can allow to lose on this trade. I have an alert to go off at 1.70 to let me know the action if I might need to get ready to sell.

 

My target price is around 1.85 which is a key point for the day. If LUM can get the strength to bust those levels. I think we can see it go higher until around 1.90 which is the next key point of resistence (high of the day).