Last time around, this trade on Sears Holding (SHLD) didn't work too well. This time around, I'm taking a different approach to this trade. Instead of buying on the breakout which is what I did before and got burned on the head-fake it did, I'm buying on the pullback to lower channel of the uptrend.
That allows me to keep risk tight (about 4% max) while possibly benefiting from a move that could go to the upper channel at around $64.00. That gives me about a 3:1 reward to risk ratio which is ideal.
I scaled in to this one as well and my buy-in price is at $56.50 with a stop at $54.48.
Here's the SHLD trade setup.
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Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>