Thesis: The stock is holding up well during the market pullback and is breaking a multi-week range while the market makes new lows. Look for an on an intraday pullback to the gray area of support and own it gainst the uptrend line, with a target at 46.50.

chart

Original Plan:

RAI
Entry 43.1
Stop 41.99
Target 46.5
Shares 1
Profit 3.4
Loss 1.11
Risk/Reward 3.06

Actual Entry: 

RAI
Entry 43.57
Stop 42.8
Target 46.5
Shares 1
Profit 2.93
Loss 0.77
Risk/Reward 3.81

End Result:

chart

Symbol Date Entered Entry Price Date Exited Exit Price Profit (Loss)
RAI 9/28/2015 43.57 9/29/2015 43.37 -0.46%

Trading Notes: A lot of notes here. First off, I hesitated with my initial plan and missed my initial entry near 34.10 intraday. I wanted to get long by the end of the day, so I adjusted my entry and exit to trade it against the low of the day. The risk/reward was fine, but the next day the stock gapped higher and then faded in the afternoon. I shouldn’t have been watching the stock all morning since my plan did not include managing the position intraday, but since I was, I talked myself out of it for a loss. The stock tested support that day (15 cents above my stop at LOD Monday), and then continued to the upside. Keeping losses small makes being wrong and missing out on big moves a lot easier. There are a lot more opportunities out there.

Lessons: Don’t micromanage positions, if I outlined the trade properly, I should be able to set a stop, a profit target, and walk away. Also, I should not be using intraday charts under 30 minute bars because that’s not my timeframe. The reason I scared myself out of the position was because I was watching 1 and 5 minute bars, something I have no business doing, ever.

As always, if you have any questions feel free to reach out and I’ll get back to you as soon as I can.

RAI Long (-.46%)