Long NIO @4.55 (very short term trade)
Updated
This is a very short term momentum change trade - not my normal overbought situation. I'm hoping to be out of the trade at the end of the day if the stock is up from my entry price. Will NOT add more lots if the price falls.
The idea is to buy on the momentum change and hold until profitable or the momentum swings back to negative (latter scenario = loss). This is most often a 1 day trade.
With NIO in the last 12M here's the results:
8-1 record
biggest loss = -6.8% biggest win = +5.8%
Avg gain = +1.5%
Median = +1.6%
Those may not seem like big gains but remember they are 1 day trades and the capital is then freed up for other ideas.
All trades using this on NIO in the last 12 months were 1 day trades except for this one I entered today. The swing was 2 trading days ago but I missed it but the price today was below that so I went long. Will update upon exiting the position.
The idea is to buy on the momentum change and hold until profitable or the momentum swings back to negative (latter scenario = loss). This is most often a 1 day trade.
With NIO in the last 12M here's the results:
8-1 record
biggest loss = -6.8% biggest win = +5.8%
Avg gain = +1.5%
Median = +1.6%
Those may not seem like big gains but remember they are 1 day trades and the capital is then freed up for other ideas.
All trades using this on NIO in the last 12 months were 1 day trades except for this one I entered today. The swing was 2 trading days ago but I missed it but the price today was below that so I went long. Will update upon exiting the position.
Note
Closed NIO position @4.6138 at the close today for a marginally below average +1.4% return in 2 days. It was a nearly 4% gain a couple of hours before the close - oh well. It's 9-1 now over the last 12 months using this on NIO.Note
Trade summary (for my records)
Wins 1 Losses 0
+1.4% in 2 days
Avg return = 1.4%
Avg hold = 2 days
Per lot per day held annualized return = +176.4%
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