It was an interesting day today. We got taken out of both LKNCY and VISL due to stops.
One disadvantage of trading strictly off of technical signals is you don’t often foresee what’s going on in the background. LKNCY filed for bankruptcy so it’s stock tanked on the open, blowing right past our 10.50 stop price and selling at 6.01. It rebounded slightly to close at 7.05. This highlights something important. Putting a stop loss doesn’t guarantee that you’ll get the price you set, and there’s always the possibility of a bounce after you sell.
On the other side, our take profit level of 3.76 was hit on VISL from back in January. So we exited that position with a nice 114% profit. Normally, I may have taken of the take profit once it started moving up nicely and just continued to raise the stop loss as a trailing stop. But, thought we’d stick with the initial trades that were put in and see how it goes.
Since we only have $68 invested right now, I’ll look for some more opportunities to get into on Monday.