From my previous blog post on 25 Aug 2024 I set out my winning trades for the day. As part of those winning trades I closed the day having only taken 33% of my profits off the table.
See the previous entry and first partial profits taken point below:
For details about the Fab 4 entry please refer to the previous post, click here if you want to go into the details behind why I took this trade and some of the rules for entry.
I had entered this trade with 120 shares and had sold 40 shares when I reached my profit target of 5R. However, the price action and the way that price was forming I decided to retain two thirds of my position overnight. Note that my stop loss had been moved on taking profits to break even.
What happened to price action when the market opened on Monday?
The previous day trading action is shown on first image. This image shows both the end of the Friday session and the Monday session where price gapped up.
Once I witnessed price action gap up and move to the upside I moved up my stop loss to the price area where the price gapped. Yes, price crashed through my stop loss and exited me out of my trade and subsequently moved back to the upside, but this is trading for you! My intuition based on the price action the day before was right that it would be worth holding overnight.
In the end the total profit on the trade was the £40 from the part profit realised on Friday and the £145 (shown below) on the closure of the remaining 80 shares giving a total profit of £185 which represented a 8R return on an initial risk of £23.
Trade Clearly!
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