I had a textbook trade in AIG this morning that really validates the Pristine method of trading and makes your gut feel warm all over knowing that you've really got something, a skill to be proud off. My trade in AIG this morning really shows off the Pristine method so take note! I found AIG this morning as a gap up surprise where price had not taken out the prior day's high, but it was close. As AIG opened, price had taken out the prior day's high which allowed me to legitimately score the gap play as a Tier II mortgage type gap to the upside. Now, I just had to wait for a proper setup which triggered on the 3 minute chart as a beautiful PBS with bottoming tail. I was in over the high of the last red bar @ .38 with full share size. It took a few minutes but price finally started to move on up into my first take profit area of .48. For some reason, I've been taking profits after .10 cents up on these morning plays where I go full share size and bring my stop to a break even on the play. This seems to work for me and I've found it easier to stay in the play longer with my other 2/3rds share size. I soon found my longer target @ .68 where again I sold 1/3rd of my shares, then I watched as AIG faded lower giving me a beautiful second PBS where I added to my lot size and reduced my stop again. I watch as price just ground it's way upward to my next primary target area of $49.00 where I sold most of my remaining shares @ .98. I finally trailed out of the play @ .93 as we were heading into lunch time on Wall street, overall a 110 point play and 2 risk units of profit made. Here is my 3 minute chart on my textbook play in AIG...
