Good afternoon everyone, the market continues to hold in strong near multi-year highs. I came in long a little China MediaExpress Holdings (CCME) overnight based on how strong it closed yesterday, and the fact that it finally cleared my $17.50 level and held. CCME was my play of the day last Thursday, but I cautioned that it may take a little while to develop. It took almost a week, but we finally got the move I was looking for. CCME is currently trading above $20.50, which is about $1.50 away from all time highs.
The lesson to be learned on this trade is simple…PATIENCE PAYS OFF! I can’t tell you how many times I tried to trade CCME between $16.70 and $17.50. It would touch $17.50, fail, touch $17 and then rebound. When it finally cleared $17.50 yesterday, the squeeze was on. Just because it failed a few times previous does not mean the trade was over and it needed to be taken off the radar.
I had an alert placed at $17.75, because I was tired of seeing CCME fail at $17.50. Once it hit there, I figured the race was on. I traded my way in and out of it all the way to its current level and made good money doing so. Just because I lost trying to wait for the move doesn’t mean I wouldn’t get paid eventually when the move did happen. It’s all about trial and error. I kept trying and knew that I would get paid when I was right.
I erased my early losses in the CCME trade pretty easily, and from the sound of it several members of the T3Live.com community did well with this idea also. Kudos to everyone for their patience. Less experienced traders may try an idea 1, 2, 3 times and then adandon it due to frustration. You must have a way to keep stocks that you like on your radar. Whether through alerts or some sort of manually kept list, you should never abandon an idea just because it didn’t work out early in the process.
Trades often take time to develop, the key is keeping your size in check until the chart tells you to load up. The same goes for long-term trades as short term trades. If there is a stock you like, but you want to wait for a pull-back, find a system for keeping that stock on your radar. Often traders will pull up a chart and say, “I meant to buy that here.” Will, in the end, you either did or you didn’t. Be organized and patient so you don’t regret missing out on an idea that you were right about.
Previous posts: China MediaExpress Riding High -Scott Redler
*DISCLOSURE: Long CCME
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