Swing Trading Day 11: Moving Stop Loss Orders Up


Today is the 11th day of testing my swing trading system at the US stock market. The market’s open was quite favorable for my positions today, as I’m already up $500 comparing to yesterday’s stock prices. I’m still long X and ANR, the two best performing stocks of the portfolio. The reward-risk ratio of the first trade has almost hit 7-to-1 with the profit going up to about $700 in 2 weeks, since I bought X shares for $19.25 on the 3rd day of the trading strategy. The initial stop loss at 18.75 has been moved up to 21.56 for an almost guaranteed profit, while US Steel’s stock price approaches the resistance level at the daily stock chart.


The same exit strategy applies to the ANR stock trading. The stop loss order has been converted into a trailing stop, as ANR shares’ price surges to the resistance level at $9.00. I use the last 2 days’ low when I move the trailing stop upwards. The entry point in all stock charts is pointed out with green color.


Today’s best performing stock of the swing trading portfolio is MT stock. I have absolutely no idea which company that is, but the support level that was confirmed multiple times over the past weeks provided an excellent entry point for my swing trading system. The gap up that is printed during the first hour of trading strengthens my confidence in this trade, apart from making it a risk-free trade by moving the stop loss above the breakeven point.


When I updated the strategy’s performance on the conclusion of the 9th trading day, I let you know that I had initiated a long trade at IDTI. This trade is already a risk-free trade for me, as the stock price advanced quite a few cents yesterday. The uptrend will likely meet resistance at $6.50 but I’m not willing to trade out, unless a reversal candlestick pattern is printed or the stock declines to a new 3-day low. That is my general rule in my swing trading when it comes to stop loss and trailing stop orders in online trading.


Two trades that have been completed today include WY and LPX stocks. They were both profitable trades and I traded out when the stock prices hit my profit targets that were set at the resistance levels. I also sold DANG stock, as it seems that the support level won’t be strong enough to prevent DANG share price from declining more.


At the time of writing the unrealized profit is $2,200 and the realized loss comes down to $950.