RE: Watchlist - Traders method
(2013-03-11, 04:38 PM)goodtyneguy Wrote: MLM mentioned above has given a another buy opp on a pullback to the BO level. Any thoughts on it about the distance from the 30 wma, or any thing else for that matter?
I think you're too early on the pullback as it's extended and so you'd want to see a pullback to around 101.5 - 102.5 for a potential entry. The trader stop would go around 93.49 beneath the previous swing low, which would be around 4 x ATR(200) risk from that entry point - which is too high imo, as you don't want more than 3 x ATR(200) risk on a trader position imo. So you'd need to wait for new swing low to form or for a pullback to around the 50 day MA in the 98 area to get that. So imo, you should just keep this one on the watchlist for the time being as the risk is too high.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.