tradersams blog

aru close

ARU: closed the position today for a 18% loss (ouch!!).  That hurt, but within the bounds of the plan – just.

According to the normal plan I exited relatively well.  I had an exit set after yesterdays (well – fridays) close.  I set a close on opening at 0.57, thinking I’d stem the loss if the share opened down – well, it opened much further down than I expected.  When I hadn’t seen the close go towards the end of the day, I did an exit at the market price so as not to let the loss get larger.

So the trade didn’t go well.  Looking at the graph there are two circled areas that could be used as exits – the one that I took, and the earlier one about three days ago where the share fell through the uptrend – a preferable exit I’d suggest.

Looking at my entry from the trade opening I note my main stated reason against the trade: “I have entered just shy of an earlier area of resistance, so may have limited potential”.  To that I should really have also added: “and the share is in a short term downtrend”.

I am ok with this trade, as I did stick to the plan – but in future I should keep an eye out for other trendlines – not just the first one I see.

(Edited post – I don’t know why – must be tired – I have switched ROC for ARU a few times in this post – updates to symbol made, not values!)