Flag Setup
This is a video review on our trade in JVA on thursday 6/16/2011. Jva was a stock that we added in the 8 dollar range that exploded to 12 the next day off earnings. Typically stocks that run up 50% off a big earnings move they tend to have multiweek runs where you can often play then over and over as they dip then breakout then dip then breakout etc. Often a low float stock that breaks out on earnings wont dip back below the orignal breakout bar. What they tend to do is have sideways movement or consolidation and then form into a flag setup. The break of this flag itself can be a very powerful move setting up a secondary breakout. We entered this trade at 13.10 it touched 14.20 with 1 hour of our buy.
Kunal,
Great Video. Was very helpful for me, for I was watching all the action on this one in the boom room and was wondering how you were all following this.
thanks
Those momo and parabolic stocks offer great volatility, and there in turn, offer major gain opportunity once you get on the right side, directed by the intraday charting.
I noticed you [Kunal] only make as few as 5 trades per day, sometimes. But, it only takes a few of these JVA-type trade setups to make an epic day, P&L-wise.
YES IT does! through the years ive noticed i only bat about 60% on my trades. Ive seen a few traders to more then that but not many. And the 3-4 best traders i know only bat 50% on their trades but their risk managment is such that they make huge amunts of money as their gains are big and losses small. I find if i take 10 trades. 6 will be positive. Out of those 6 I will sell 3 for 2-5% gains 2 for 5-10% gains and 1 for 10% plus. This ratio can make u good money as long as the 4 losses you take are relatively small in comparison.
great video, very interesting