Redart closes a profitable swing trade on WWE: bought 22 shares at 87.20, hit the 95.76 target in 11 days for 1.83R profit ($188.32 after commissions). He shows the Interactive Brokers execution and explains why he adjusted his stop to avoid getting shaken out by volatility.
87.20
82.53
Stop = 86.948738; Limit = 87.38
95.76
22 shares
Hi, welcome to this new video. Today I want to conclude the explanation for the WWE trade that we took around 10 days ago. And why I want to do that because a few days ago the trade hit the target. So it was a profitable trade. And I want to analyze this with you, so you will see what happened. Now, if you remember, on my previous video on wwe, and again, there was a first video where we analyzed together the fundamentals why it was a good trade. On the second video, we entered the trade and you can see here, we had our order entry stop limit with a target and a stop loss. And you can see the numbers here. So as you can see, our stop limit was 86.948738 with a stop loss at 82. 53. In case the trade is going against us, we have to cut loss. And the target was 95.76. We bought 22 shares using this position sizing calculator that I explained last time. Now what happened? Let's have a look at the chart. Remember we were around this area and we said that there was this dip on the uptrend. We wanted to enter here and take profit before this high. That could have been a potential resistance. So let's zoom in and see what happened. So remember, our entry was above this candle. Okay, we placed the order here. We saw this price. It was going down, then up, then down. And then it started to go up again. So what we did, if you remember, we placed the order to enter here. And the stop loss was around 82.53. So the stop loss was around here. Let's say stop loss and we enter here. Where was the take profit? Well, the take profit was 95.76. That is around here, take profit. Now a few points here I want to highlight number one, you see the importance to place the stop loss far enough to make sure that we are not exiting with a loss due to the volatility. And see what happens here. You see this big candle, very long tail here. If our stop loss was too tight, this candle could have triggered the stop loss. So it was a good idea to place it here. Now the trade was triggered the next day. So let me show you again. Better to erase the trade was triggered this day. Okay, here and why? Because the price went above our high. So it was in the range of the entry stop limit. We will see later more in detail. And then the price went up, up, up, up. And you see there was this dip here. So when I saw this dip, what did I do? Well, I raised my stop Loss below this dip. Why? Because at least if the price is changing direction at this point, at least I can take some partial profit. Okay? And actually it didn't happen. So what happened instead is that the price keep going up, up, up. And then this day it triggered our target. Now you see that after this the price keep going up. But we don't care. The idea when we take this win trade is to enter and exit quite quickly. And then we don't care what happened after that the price can go up. You should not feel bad about that. We took some profit and it was great. Now let's have a look at the account management of Interactive Broker. That is the broker we used last time to take the trade. But you can see already from here that on 12th of April, that is this day our 22 shares were sold at 95.76. That is our target. So if we go to the account management here, you will see the details of the trade here. And basically what are we Interested in? Number one, 1st of February we bought WWE 22 shares at this price, okay. 87.2. And 12th of April we sold the 22 shares. That's why you see the minus because we are selling right at 95.76 and that's the profit we made. 188.32. Now let's have a look again at the data we used last time to enter the trade. So remember we add a target at 95 cent and then we have the entry stop limit at remember stop limit means if the price is trading between the stop and the limit, the order is triggered. So the stop was 86. 94 and the limit was 87, 38 and the stop loss was 82, 53. Now you see that the price 87.2 was actually in this range. OK, as I said last time when we analyzed the AUDC trade, we don't know where the price will be. The order will be executed, right? If we are lucky, it will be at a good price around the stop. If we are less lucky, we'll be around the limit. In this case it was somehow in the middle. Now if we want to compute the R that we made, remember, what should we do? The R is what the entry minus stop loss over the target, whatever we are selling at, minus the entry. So let's do this to check how many hours we made. And remember we have here also the commissions and total is $2 5. That is really low. So for this computation, commission will not make a big difference. That's one of the advantages of using a broker, like interactive broker. Other brokers may charge you a lot of money. So in order to be profitable, you need a lot of capital. So let's check what is this number? So remember, we enter at 87.2 and we exit at 95. 76. So the profit for share is 856. And the difference between stop loss and. Sorry, entry and stop loss is what? Well, 87.2 minus 82. 53. That's right. And so we get 1.83. Around 1.83 R. 1.83 R. Okay, now in this case, since we were risking around 1% of 10,000, so $100, our R was around $100. And that's why you see that the profit we have is around 100. Is this number times 100. It's not exactly the same because as I say, there may be some differences between the price that we put the stop price and the real filling price. But more or less we are close. So that was a winning trade. In 11 days we made 1.83 R. That was quite good, I have to say. And after that, as I said before, the important thing in this kind of swing trades is not to feel that we have missed something because we were not able to take profit at the maximum. We will never be able to get the maximum. But here the important point is to see that we are approaching this high. So at this point, maybe the price will change direction, but we don't care because we are already out. We already took profit. And then what we should do is just to focus on finding new opportunities and keep taking trades in this way, in a consistent way. So in the long term we will be profitable. And with that I would like to conclude this video. If you have any question about this trade, please write me a comment and see you next time.
