****NOTE from Mish:
Friday was the only time since I can ever remember that we lost on 4 trades in one day. In fact, since I started this service, it’s never happened. We always use risk parameters that make sense and after many stop adjustments, ultimately risked exactly the right amount or about 1 ½ to 2 ATRs on any given trade and ½% of the overall equity per trade. It is unfortunate that the market hit mostly everything so hard, but that too is rare. The good news is that we have lived through and experienced the worst drawdown we have had and although unpleasant it does and will happen to any system or trader. The net drawdown was less than 2% and that is very manageable.
Therefore, lesson is threefold-one, never risk what you cannot afford to lose; two, always use a stop and have the discipline to stick to it; and three, always use a risk/reward formula of 2:1 or 3:1 and ultimately, you will never go broke and most likely make money in the long run.
GLPI out 32.13
STT out 73.24
SLB: Out 83.64
PM: Out 83.07
***NOTE on Sell Stops: From now on, will use a 2 minute time confirm on our sell stops. That means the instrument has to trade at or below the price for 2 consecutive minutes. If cannot use time confirms, subtract another 10% of the ATR then place your stop.
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Existing Position: Long BBRY 10.50 ATR: .23
Name of Instrument: Blackberry Ltd.
Current Price: 10.67
***Raised Breakeven Stop: 10.59
Reason For Trade: Cleared converging moving averages with huge volume. A 2015 focus pick as its software is takeover material for many companies who wish a more secure phone system as Blackberry is used by the famous who do not want their calls hacked. BlackBerry announced Wednesday, 2/25/15, it is working with Google to enable BES12, a cross-platform EMM solution by BlackBerry to manage devices equipped with Android.
First Profit Target: 11.19 for ½ off
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Long PM 82.99 ATR 1.14 Out 80.07
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Long: STT 76.50 ATR: 1.57 Out: 73.24
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GLPI: Long 33.35 ATR .60 Out 32.13
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Long SLB 85.00 ATR 1.73 OUT 83.64