{"id":1234,"date":"2009-06-25T16:41:46","date_gmt":"2009-06-25T20:41:46","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1234"},"modified":"2023-04-24T13:30:24","modified_gmt":"2023-04-24T17:30:24","slug":"from-the-mailbag-ba","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/from-the-mailbag-ba","title":{"rendered":"From the Mailbag: BA"},"content":{"rendered":"

Yesterday we blogged<\/a> about a short in BA. \u00a0A reader posted this question in response.<\/p>\n

Daryn Says:
\nJune 24th, 2009 at 5:17 pm<\/p>\n

I was thrilled to see this post today\u2026 at least I knew I was looking for the right trades. What would you say to a trader who watched this trade setup and then somehow managed to walk away with a scratch\u2026and by scratch I mean not a single dime. I got short at the .72 and was in the money almost right away. My initial stop was at .81 and the trade was working nicely. However I brought my stop down too quickly (right to my entry point) and covered my short at .72..one freakin penny from the move high. My thinking at the time was that I simply did not want to let what was potentially a .20 winner turn into a loss. Well, I prevented that alright and in the meantime I missed the trade of the day. Very frustrating to say the least and to make matters worse I failed to re-enter as I moved onto other opportunities. I seem to miss these moves all to often as I take quick scalps. This was a case where I planned to play for the larger move and did not take the first .20 the trade offered me, then a bounce occurred and I was shaken out of a great trade! Love you blog\u2026keep up the great work!<\/p>\n

Bella responds:<\/p>\n

If you were to do this on our desk we would call you a wuss. \u00a0Playfully of course. \u00a0 For us this was a Trade to Hold. \u00a0We do not cover a Trade to Hold unless it makes a significant downmove, hits our stop price, or there is a Reason to Cover. \u00a0And none of that was present at 72c.<\/p>\n

Let the stock breathe. \u00a0This was a great set up in BA. \u00a0 Even a conservative trader would not have entered a stop below 81c. \u00a0If your stock makes a significant downmove to, for example, below the whole then you can adjust your stop. \u00a0If you see a huge buyer below support, 75c, then you can consider covering. \u00a0If the market exploded then this may be a reason to cover. \u00a0If breaking news hit then perhaps. \u00a0If the seller in BA disappeared then maybe.<\/p>\n

And I know exactly what you were thinking in this BA trade. \u00a0It was a slow mover. \u00a0It was not collapsing below the support level. \u00a0Hey sometimes they crack quickly. \u00a0This is usually the case below an important support level. \u00a0But you also must be prepared for the slow drip. \u00a0BA doesn’t have to go down exactly so that you are most comfortable. \u00a0 And that is what we had in BA.<\/p>\n

But let me say you are on the right track. \u00a0Do not undervalue the importance of being in a good stock. \u00a0And not only that but you were spot on with the level. \u00a0Further you are reviewing this trade exactly how you should. \u00a0You found a great set up and you are replaying one of your most profitable opportunities. \u00a0This is how you improve. \u00a0Find the plays that work for you and master them. \u00a0 If you continue finding great stocks like this and their important levels you will make an awful lot of money in your trading career. \u00a0And overall this is excellent work.<\/p>\n

Best of luck with your trading! Don’t forget to follow us on Twitter!<\/a><\/p>\n

Happy to be a part of the StockTwits blogosphere.<\/p>\n","protected":false},"excerpt":{"rendered":"

Yesterday we blogged about a short in BA. \u00a0A reader posted this question in response. Daryn Says: June 24th, 2009 at 5:17 pm I was thrilled to see this post today\u2026 at least I knew I was looking for the right trades. What would you say to a trader who watched this trade setup and then somehow managed to walk … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[4676,30,18,301],"class_list":["post-1234","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","tag-day-trading","tag-prop-trading","tag-smb-capital","tag-trading-blog","no-post-thumbnail"],"yoast_head":"\nFrom the Mailbag: BA | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/from-the-mailbag-ba\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From the Mailbag: BA | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Yesterday we blogged about a short in BA. \u00a0A reader posted this question in response. 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