Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 96

In Ann Taylor (ANN), the stock made a big dive, forming the left side of the big W in late 2006. I bought on 1 February 2007, at a price of 35.19. This was a late entry by about 2 weeks, and yet if I had bought at a penny above the confirmation price, I would have entered the trade at a lower price: 33.82. My preferred entry method is to place a buy stop a penny above the breakout price.

On the sale, here's what I wrote: “21 March 2007. I decided to sell this using a trailing stop set between today's close and the low +.01 as the cents margin (11 cents) [I think this has to do with setting an automated trailing stop with my broker]. Hopefully, this will move up in the morning and I can get out at a higher price than just selling at the open. The market was up big today, and this stock was one of the few to close lower. It's running up against SAR [support and resistance] at 39–40, as predicted. My guess is it'll form a handle and backtrack. I don't want to wait around, though. I think the company sucks because SSS [same‐store‐sales] are soft despite positive comments from the company.”

I received a fill at 39.09. Four trading days later, the stock peaked at 39.92, before entering the bear market and seeing the stock bottom at 2.41, or 94% below where I sold. I made 11% on the trade.

 Lesson: Buying as soon as the stock breaks out of a chart pattern is often better than waiting.