1. Solid Trading Strategy that has been back-tested thoroughly!
2. A detailed set of rules and conditions that must be met in order to trade your back-tested strategy.
3. A trading plan that consists of Entries, Targets, and Stop-losses derived from your back-testing results.
4. A hand full of stocks that you know inside and out. You have watched them for long enough to almost sense there next movement. You have thoroughly back-tested many different variables in order to figure out what the best way to trade those stocks may be.
Of course there is more but I find these to be very important especially if you are just starting to trade.
I am on WBA 0.25%moving forward however I have had great success with the setup on this ticker and we are due for a retracement.. I have set targets at the . of leg C to D
(use tool to pull a retracement from C to point D)
My entry was around 85.90 with a stop loss in the area of X. this trade typically averages 5-10 days on this ticker and hits a .618 more often than not however due to the recent retail sales numbers and the strength in the markets, I have chosen to take a . as opposed to a .382 for target 1 and .618 for target 2. I will be following this trade on the hourly chart as well. You will notice that we are currently forming a on the hourly chart and I will use the break of that triangle to manage my trade. if we break up out of the triangle then I will look for price to stall out around 86.50 and head down to targets..
P.S I might be looking for a long if targets are met on the current and we reach a price of 83.50 so be sure to keep and eye out for another idea if targets are met on this trade..
I hope this was helpful! Good luck trading and
$$MAKE SOME MONEY$$
I do see a little more down side in the near future so if you did take this trade and were not able to get filled, hang in there as I believe price is working its way down to $84 again. I am a BULL if we reach $83.50 and my criteria's for that trade remain positive. I know many people probably got stopped out of this trade due to the huge spike we saw shortly after entry however these spikes are very common on this ticker symbol because there is a lot of institutional buying and selling therefore detailed back testing is required to trade this symbol or you will find yourself on the wrong side of every trade. this is a tricky symbol but very very profitable if you can get on the same page with the big traders and institutions. thankfully I have thoroughly back tested this symbol and have been trading in for several years so I have a good sense of how this stock moves and where stops should be.. if you followed the rules of a Cypher Pattern trade (stops above the high of X) you would have been stopped out for a loss and this is yet again another reason why back testing is soo important!
I trade options with this ticker symbol so I was able to avoid being stopped out and later went on to sell that option for a nice profit.. I will be sharing many more of these trades with you all in the future. Good luck trading!
$$MAKE SOME MONEY$$