One good trade: 2.14R profit in 11 days by Redart

Hey, welcome to this new video. Today I want to analyze a trade that hit my target profit. Actually the first winning trade of April and the ticker is Audc, you can see it here. So before moving to the technical analysis that you will see here, I want to show you quickly that this company is quite, quite good fundamentally. You can see here the values of earning per share this year, next year are quite good. Positive next five years as well. The quarter to quarter earning and. And sales are good as well as the. Well actually if you look at this, everything is good. The only red thing I see is here, the 52 week swing, high value. So it means that the price is below the high of the 52 weeks. But in this case it's here. So at the time I took the trade, probably this was green as well. So it's a good company. And given the market situation at that time I was more into trades with Target. If you watch one of my previous videos, I said that when the market is not clearly trending very strongly, I rather put my target because it's possible that the market will change. Now let's go to the technical part. Now if you see the chart, the trend was up quite good. As we say, the fundamentals are good. And then this day here, okay, 19th of March, I was looking at this and this came out from my screener. And what is the rational behind? Let me explain to you. First thing, there was this counter trend line that could be a resistance. And at this day here, you see that this candle broke this counter trend line. That was a good sign. At the same time if you see here, the volume was increasing. That is also a good sign. Now when I saw this candle, what did I say? I said okay, what I can do is to put a stop limit order. If you are not familiar, please revise my previous video. So I put a stop limit order a few cent above the high here. Okay? So I wanted to enter here. And where did I put my stop loss? Where my stop loss was? Let me show you. It was at this level, 1266. Why? Because this value here, the low here is 1269. You can see if you put your your mouse here, you see here the values. Okay, so if you click here you will see that the low here was 12.69, right? You can see. And what did I say? I said okay, let's put my stop loss a few cent below. So my entry was around here and my stop loss was around here. And if you remember, this is our 1R. So the next day what happened the next day the order was triggered because you see the, the price was above the previous one. So my order was triggered here. So I was in the trade. Now after this day the price went down again and it almost hit my stop loss. Okay, I think for a 1 or 2 cent it didn't hit. Now I could have put my stop loss below one atr, below this support, it would have been safer. At the same time this was meant to be up quick trade. So I just decided to put my stop loss a few cents below the low. Of course it's a little more risky because the odd, the probability to have a stop loss is higher. But you can get your profit in a quicker way. So what happened after that? The price went up, up, up. And then at this time there was a big green candle. See the price was going up so much. So at this time what I did, I raised my stop loss to entry price. So it would have been a break even trade in case the price was dropping before hitting my target. But then the day after the price hit my target so I was able to exit at 1580 and it was a winning trade. I want to mention something here that is interesting about the filling price both for the target at 1580 and the entry price. So let me show you. So as we said, entry price was 1366. Now when I place the trade I use a stop limit where the stop was 13.65 and the limit was 13.75. It means that the order will be triggered if it's triggered in this range. Now my order was triggered near the stop, so it was good because it was filled at a low price. So this is something to understand that it could have been triggered at any price between these two. But it was triggered here. That is quite good. As I said, my stop loss was 12.66. Exit price here is also interesting. It was 1580, but my order was at. Actually I think it's a mistake. It was at 1578. Okay, it was a 1578. Now sometimes it can happen that again, your order is not filled exactly at the price you want if the price is moving very fast, for example. So in this trade I was, I have to say, particularly lucky. Why? Because it was filled at the low range and it was exit at the exit price was above my limit. So if you compute the trade, the profit, this is the R that I make. Remember, R is the distance stop loss to entry. So we enter at 1366, we exit at 1580 and this is the amount of money that we made for One share. And what was the risk? As I said, is the one R this value that is the difference between the entry price and the stop loss. So how many hours did we make? 2.14. This trade was meant. Usually I get 2R but because of what I explained that the very lucky feeling price and exit price, I made a little more. And here you can see this is taken from my trading account Interactive Broker that I bought at 1366 as I said, and then I sold at 1580. And here you can see profit and commissions that are quite low. And of course how much money you make really depends on your ark. Remember that you should risk 1 to 3% of your capital per trade. So if you risk 1% for example, then what did you make with this trade? 2.14%. If your risk was 2% then you would have made 4.28%. That's how it works. So with this I would like to conclude the video it was just to show you a winning trade. It was quite fast because if you. If you look at how many days last I entered at 20th of March and exit 4 of April. So just few weeks and I think less than two weeks. So it was quite quick. But again I was a little more aggressive. Why? Because I put my stop loss tighter. Anyway, I always ensure that the stop loss distance to the entry so the R is at least one atr. So I don't want to be stopped out by the normal volatility. In this case it almost happened. But I also make sure that I was a few cent below the previous support. So again, thank you for watching and see you next time.