Hi everyone. I decided to add two long positions (from my 16 stock watchlist) because they presented favorable risk-reward ratios.
I bought YY about 10 minutes before the market close, and it’s down a bit from where I bought.
YY daily chart below. Risk to reward is 1 to 2 ($4 down and $8 up).
I bought MTCH at market close today at $131.48 (daily chart below). I’m also using a smaller position (risk 0.5% to account) because I could get stopped out very quickly. I suspect that this trade will usually take longer to play out (up to 4 week hold), and I’m prepared to average up if price performs well. Risk to reward is 1 to 3 ($6 down $18 up).
Lastly, I will be closing out the rest of my MRO position tomorrow.
Holding MRO for a year has exposed one of my weaknesses. Because I’m usually swing trading with an average hold time of about 8 – 9 days, it’s much harder to watch the market move up and down on a longer time frame (like 1+ years). This is because I’m so used to buying and selling within a week or month.