I had to let go of BA today. I didn't want to, but everything was pointing to a very overbought short term stock.
-Declining positive volume over the past couple days
-Resistance at around $86
-Stochastic as well as the RSI indicating very overbought
-Red candle today did it for me
I wanted to protect my profits. Too many times in the past have I seen myself give back my profits. I entered in (factoring in commission) at $78.44 and sold at 85.44. This gives me a 8.92% profit on that trade. Looking back I had my stop at around 76.5 and took a risk R of 1.58.
Selling this trade may come back and bite my in the butt because of Boeing's strong fundamentals, but I think in the short run it was a decent trade to make. If it fall back to a certain level, I will consider entering it once again.
And out of superstition (based on some past experience), I am not going to talk about trades that I am in. I feel that it gets my emotions out of sync, which won't allow me to trade with a clear mind. That being said, I leave it open that in the future I will discuss trades that I am in.
Labels: Featured Stocks, Finances