Pristine is all you need!

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  I'm still attempting to catch up from my week in trading, but first I'm dumb founded on how many traders, educators, etc. still follow the news on the stock that they are trading.  Why make your life hard, when price, volume, and time is all you need to learn to trade the market successfully.  You would not believe how many times I've listened in on a pre-market internet broadcast and the host is reading the news, who cares what the news is, price action will always give you the answer.  Now, with my statement out of the way, on to my trade in SBUX.

My trade in SBUX was from Thursday and hit my screen as, "a result of price action... Cough, cough, ahh", a 9:45 am wide range red bar to the downside.  Since the market was rolling over hard @ 9:50 am reversal time, I felt that it was safe to enter on a GBI that had formed at 9:50 am that was engulfed by another red bar at 9:55 am.  My entry was a bit aggressive but I had a target at about .60 cents and felt that I had the market in my direction, but then the market bottomed and began to rally hard, as I watched my stop hit, Ouch!  With market still not committed yet to a long fully, I re-entered my play short at .91 cents as SBUX triggered it's first 5 minute sell setup.  This time I went in with 1/2 the normal shares and would be able to withstand a strong rally which would allow me to be more committed to reaching my original target of .60 cents with at least my starting share size.  As expect price moved lower but again bounced and rallied back up to the prior 5 minute pivot near the PDC and triggered a 2nd sell setup where I went to a full share size short.  I was not sure at this point if the play would continue to go lower and I was prepared to take my stop if needed since the PDC is my line in the sand for a short play.  Now with a full share size price moved lower, it was my goal to hit the target with my original share size so I ended covering 2/3rds at the first inclination that a rally was going to move prices higher which happened @ .98 cents.  I left on 1/3rd of the shares added to my play and watch as prices came up to base just under the PDC.  Finally prices moved down near 11:15 am reversal time with price giving me 4 sold red bars to the downside, then rallied two 5 minute green bars to trigger a 3rd, 5 minute sell, just below the PDC.  I added the same amount that I had added from my first add on the sell trigger @ .98, now I had a full share size plus 1/3rd more shares.  I really knew that I had the play in my favor so when I sold 2/3rds of what I had just added @ .94 cents, it was a rookie mistake.  Now I still had over a full shares and my goal was to take the full lot to target.  Well, I made it to .67 cents with over a full lot+, full share size and hugely profitable.  My goal is to bring you more plays like this, taking a full or larger size all the way to it's target with the original 1 risk unit stop, this will be the ultimate in my development as a master trader... 

SBUX 05292014
SBUX 05292014

 

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