I am fighting a bout of insomnia at the moment so got up did my morning handicapping and now heading back to bed. In case I dont make it up for the open in the stock market my strategy for today is:
If hpq were to open where we have a profit I will exit at the open(unlikely since the market is down in overnight trading) If this doesn’t occur then I will again be looking at the rsi(2) and if it appears it will close over 50 I will exit the trade just prior to the close.
We had a nice bounce on Monday…..So the possibilities of closing this trade at a gain are much better now. This trade is a good example how these trades are not as easy as they appeared. We have made a nice profit going around 17-0 on these prior swing trades. So this is the first example of the downside to the trade.