Arbitrary But Consistent (ABC) Stop Management (Part V) | Home | Ten Trading Ideas for Tuesday, January 8

January 8, 2008


Who Needs a Smart Stop When You’re a Lucky Dummy?

Following up on yesterday’s post about aggressively trailing a stop in Logitech, it all turned out to be unnecessary. LOGI gapped down and traded lower forming a down bar on the daily, while hitting our target of 32.57. For record keeping purposes, I will use the ABC Stop method and trail the stop to above the high of this down bar at 33.44.

Assuming you risked $500 on this trade, you would have locked in around $2500 in gains (5x initial risk) at this new stop level. One good trade like this makes up for a lot of clinkers.


Click to enlarge

This entry was posted on Tuesday, January 8th, 2008 at 7:25 am (utc+8) and is filed under The_Box.

2 Responses to “Who Needs a Smart Stop When You’re a Lucky Dummy?”

  1. stevegee58 said:
    January 8th, 2008 at 11:21 pm

    Came within a whisker of being stopped out at $33.45 in the opening seconds. Still short.

  2. C. Maoxian said:
    January 9th, 2008 at 8:39 am

    steve: I’m going to mark this one as closed above 33.44 … that was a brutal pickoff of the previous high before it tanked again. I’ll have to look at T&S to see how many trades went off above 33.44, but for record-keeping purposes this trade is over.

Post your opinion