If you want to swing trade, you need to have patience. Like a lion quietly waiting in the bush. You need to stalk your trades.
Then when the time is finally right… YOU POUNCE!
STALKING CYBERARK SOFTWARE ($CYBR)
After riding it up from Jan – June, I kept it on a special “interesting ideas” watch list. This is the spot where I keep all my ideas that i don’t want to lose track of.
I’ll check this list every weekend and see what’s setting up. There’s about 100 ideas on this list.
On Nov 16 I saw $CYBR setting up. I shared my thoughts on this idea in TRADER’S MINDCHAT.
Here’s what I wrote:
Seeing a symmetrical triangle down on the daily and below. I’m aware of the potential resistance at the 200dma and 40wk line. If we bust above there, we’ve got a clear run to highs at 148. Do we get there? Who knows. That’s why we look at the target as a POTENTIAL and we call it “Potential R”. It’s the next major level of resistance. . Always manage your reward:risk throughout the trade.
|TIMEFRAME||ENTRY||STOP LOSS||TARGET||POTENTIAL ‘R’|
|Daily and below||$115.70||$111.70||$148.00||8.08|
This gave us a potential 8R trade! I love that s***!
Check out the TRADE-EMOTIONATOR to calculate the right amount to buy every time.
$CYBR broke out Nov 18. Here’s how I’m playing it.
- I am playing it on the 2HR. While I’m AWARE of many timeframes (I keep track of monthly, weekly, daily, 2hr, 30min, 15min), when trading, it’s important to trade on just one.
- I hit 1R (1x the amount I risked) when CYBR touched 119.76. That prompted me to raise my stop. Support developed just above my entry point and I moved my stop up to 116.10
- I’m using the 5ema as a trailing stop for 1/4 of my position. Same deal for the 10ema. If we close below that, I’ll sell another 1/4.
- My ultimate profit target for this is 148. IT’S RARE to get there smoothly. With that profit target, this trade started out as an 8:1 reward:risk. IF at any point the price action makes the ratio less than 3:1 w/o creating a fresh area of support, I’ll take 25% off.
What are your thoughts? Drop’em below or join TRADER’S MINDCHAT and engage with us 24/7!
Michael Lamothe founded MARA in 2018, and his mission is to help traders succeed in the market by focusing on mindset. Michael has helped thousands of traders through his methodology. He is an international speaker, presenting at AAII, Stocktoberfest, Benzinga’s Global Fintech Awards, and more! He’s also been featured on NASDAQ Live.