Posts Tagged ‘EMA’

Hi all,

I bought last Thursday BA @ 132.1 and today I’ve sold it at 148.1 for quick 12% return. I am quiet please but of course it could be better. The share price closed today at 150 so I could do better. But I wanted to sell on the upper channel of the EMA 22 and yesterday it was 148 and this is where I placed my limit order.

And because I wasn’t in front the computer all the day I couldn’t see that the EMA has move up and so the channel to 152. In that case I would have change the limit order to 152 to follow the trend. But if it is a beginning of a trend I would buy it back when it touches the top EMA again.

The only problem is that my when I opened the trade my stop was at 120 and my first target was 144. Meaning 12 points risk and 12 points profit target or in other words 1:1 balance which is not good. 1:2 is much better. On the positive side I move the stop loss very quickly to a profit zone once the share went up so for most of the time it was risk free trade.