Here’s The Steps to Book 30% Profit in 10 Days

I have done 4 trades so far this month. They are McDonalds, Lorillard, Airtran Holding and Safeway Inc. I think it is about time for me to give an update on their performance so far. Quick summary, I covered back McDonalds with a small profit. Lorillard was stopped due with almost break even price. Finally, I managed to book in a 30% and 20% profit on Airtran Holding and Safeway Inc respectively.

How did I book in profit within such a volatile market condition? Let’s check it out now!

McDonalds & Lorillard at Breakeven

Let’s start with the bad one first, I opened McDonalds seeing it trading near the 100d and 200d MA resistance. However, the market turned a bit heated up trend after that, plus hearing the annoucement from McDonalds that they same store sales increase, which is a good news to me. I decided to cover it first with a small profit (Almost breakeven). In this case, I choose to be conservative and protective instead of taking risk as I feel that the risk is not in my favour. (You can read the details in my earlier post : I covered my McDonalds short).

Lorillard was also trading near the 100d and 50d when it caught my eye. Therefore, I decided to short it. The market did indeed followed my prediction and dive down to give me a 11.8% of paper profit. I decided to ride the trend after seeing 3 dark candles on Nov 12. I also shifted my stop loss to 62.5 which was a recent high 3 days back. Unfortunately, the stock did not continue the down trend and it rebounded. Eventually, my stop was triggered on Nov 17 and it ended my position with a breakeven again.

Entry, Exit Stop with Lorillar Breakeven

30% Profit on Airtran Holding

I applied the same methodology as McDonalds when I spotted Airtran holding. It was trading near the 200d MA resistance when I decided to short it. I shorted it by using a recent high as a stop.

It was quick a roller coaster ride in this counter. The counter turned quite volatile with a wide trading range after I shorted it. It did rebounded and retested the 200d MA again. Again, it was resisted hard on the 200d MA and took a deep dive to hit my profit target. This ended me having a 30% profit in 10 trading days.

I think that’s still a good lesson and good profit to me. I am happy about this position and it taught me to have faith in myself and hold tight with my trading system of stop and profit target.

30% Profit on Airtran Holdings Inc

20% Profit on Safeway Inc

I entered the Safeway Inc with the same entry signal of MA resistance with a recent high as my stop. It reached my profit target 7 trading days later. That was last Thursday while the market sentiment was bad with Dow Jones falling 400+ points on that day. I decided to hold the position and not to book in profit yet as I see the counter open higher and forming a long dark candle to close much lower. This decided rewarded me with much more profit with a real dark candle last Thursday.

I finally booked in 20% profit on the following day as I started to see the market started to rebound.

This also taught me another lesson, while we hold on tight to our profit target, we also need to stay alert and be observant on the market sentiment. We can choose to hold on the position while we see the market sentiment will turn into our favour.

20% Profit on Safeway Inc

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

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