If you want to swing trade, you need to have patience. Like a lion quietly waiting in the bush. You need to stalk your trades.
Then when the time is finally right… YOU POUNCE!
STALKING CYBERARK SOFTWARE ($CYBR)
After riding it up from Jan – June, I kept it on a special “interesting ideas” watch list. This is the spot where I keep all my ideas that i don’t want to lose track of.
I’ll check this list every weekend and see what’s setting up. There’s about 100 ideas on this list.
On Nov 16 I saw $CYBR setting up. I shared my thoughts on this idea in TRADER’S MINDCHAT.
Here’s what I wrote:
Seeing a symmetrical triangle down on the daily and below. I’m aware of the potential resistance at the 200dma and 40wk line. If we bust above there, we’ve got a clear run to highs at 148. Do we get there? Who knows. That’s why we look at the target as a POTENTIAL and we call it “Potential R”. It’s the next major level of resistance. . Always manage your reward:risk throughout the trade.
|TIMEFRAME||ENTRY||STOP LOSS||TARGET||POTENTIAL ‘R’|
|Daily and below||$115.70||$111.70||$148.00||8.08|
This gave us a potential 8R trade! I love that s***!
Check out the TRADE-EMOTIONATOR to calculate the right amount to buy every time.
$CYBR broke out Nov 18. Here’s how I’m playing it.
- I am playing it on the 2HR. While I’m AWARE of many timeframes (I keep track of monthly, weekly, daily, 2hr, 30min, 15min), when trading, it’s important to trade on just one.
- I hit 1R (1x the amount I risked) when CYBR touched 119.76. That prompted me to raise my stop. Support developed just above my entry point and I moved my stop up to 116.10
- I’m using the 5ema as a trailing stop for 1/4 of my position. Same deal for the 10ema. If we close below that, I’ll sell another 1/4.
- My ultimate profit target for this is 148. IT’S RARE to get there smoothly. With that profit target, this trade started out as an 8:1 reward:risk. IF at any point the price action makes the ratio less than 3:1 w/o creating a fresh area of support, I’ll take 25% off.
What are your thoughts? Drop’em below or join TRADER’S MINDCHAT and engage with us 24/7!