When I bought Viohalco’s shares 10 days ago, I expected Greek BIOX stock to continue trending sideways. Stock trading is all about buying low and selling high and for the time being I had just managed to buy low. It had been pretty clear that the stock’s price had found support at €3.40 price level. I just had to set a tight stop loss at €3.20 risking about 0.20 per share for a likely reward up to 0.60 per share. I have now scaled out almost 80% of my initial position securing close to €500 profits, while letting the rest of the shares catch a possible breakout above the resistance level of the trending channel. On the other hand I don’t stand losing any money, since I have moved my stop loss above the entry point, making it a risk-free trade.
It only took 2 days to scale out half of my position and secure about €250 profit. My long trade on 10th of January for 1,975 shares (didn’t manage to effectively buy 2,000 shares at my price target) at €3.43 average price had a risk of €400. I usually take out my first profit when the stock’s price has moved the same ticks as the number of ticks I risk with my stop loss. In this case I risked about €0.23 per share, so I was looking to trade out 1,000 shares at more than €3.66.
The stock didn’t lose momentum though and I was able to trade out 25% of my position at the resistance level at €4.00 as well. Selling 500 shares at €3.99 has been a perfect exit point, noted by the long shadow of that day’s candlestick at the daily chart. That trade secured me even more profit, €280 to be precise. As I have now scaled out 75% of my trading position, I have now allowed myself a risk-free trade of 475 shares of VIOX stock, since I will trade out at breakeven point, should the price falls back. On the contrary, if the resistance level of the channel is overcome, given the fact that the Bollinger Bands’ width gets narrower in the weekly chart, I could make even more money due to the strong imminent breakout with just 475 shares than what I have already made by trading 1,500 shares!
