What's New?

Friday, February 23, 2007

Lessons Learned: ALI Failed to Breakout @ 17.25

My oh my, today ALI failed to breakout @ 17.25. I was not to cut-loss @ 17.00. Blame my internet connection! Hahaha. Anyway, I cut-loss @ 16.75. Awww!

ALI Bar Chart as of Feb 23, 2007

Last night, during Absolute Traders Session I mentioned about ALI to my fellow Absolute Traders. They asked me why I picked ALI. I told them I saw the right triangle and it might do a break out because of the LOW=OPEN, HIGH=CLOSE and High Volume than the previous day.

Reward and Risk Ratio 1:3
This morning, I have second thoughts about placing the ALI orders. But, I still proceeded to buy ALI backed with the idea to trade without emotions. And, I am also evaluating the Risk and Reward Ratio. More, this is about learning to trade the Philippine Stock Market. Of course, I want to earn BIG MONEY too!

I should not have traded within the Range. Though, I know there's the possibility of it breaking out. I should have waited for it to hit @ 17.50 and also have checked the volume.

Last night, Mentor Bonner Dytoc shared to us some of the trading tactics. Like, with the triangle pattern,
  • some people will trade before the breakout
  • some after the breakout
  • some after the breakout then price made a pullback then bounce back.
It also depends on what kind of a trader you are. Either you are a conservative or aggressive trader. And, each trader has it own trading tactics depending on his / her personality.

Anyway, I just started trading this month. And, I know there are so much to learned.

Related Post:
ALI: Right Triangle - Breakout @ 17.25