introduction
This article reveals the details of my recent Visa (V) trade. Although it turned out that I held it for quite a while, the profit was not as big as I first hoped. I decided to sell it since I saw more volatility in price action.
Next, let’s talk about the considerations of the trade, such as why the position was opened at that point, what was the initial stop-loss level, what was the profit target, and so on.
details of the trade
opening the position
Here are the details for opening the position:
- Date: 21 Nov 2023
- Underlying Price: 253.32
- Stop Loss: 240.79
- Profit Target: 309.60
- Market Outlook: Confirmed uptrend
- RS Rating: 86
- Price: 253.32
- Position Risk, %: 4.93
- Position Risk to NL, %: 0.57
- Position Size, %: 11.49 of the portfolio
- Why did I open this trade at that point?
- The price was in the buy zone.
- EPS is in an uptrend.
- Was it an ideal buy?
- No, the volume wasn’t high enough at the breakout.
closing the position
- Date: 26 Jan 2024
- Price: 265.60
- Market Outlook: Confirmed uptrend
- RS Rating: 79
- Remarks: Price got volatile. Stopped out.
- What went well?
- I bought it when the price had come out of the double bottom base with a big volume.
- The price had low volatility.
- Sold when the price got volatile.
- Cause of Error / IMPROVE:
- Kept the stock too long. ROI wasn’t that good. Should have sold earlier.
- Lessons Learned:
- It is a good idea to raise stop-loss when the stock is in profit and/or you don’t want to hold it anymore. This way, you can lock in a profit.
- Position ROI, %: 4.04
- Position ROI (Portfolio), %: 0.46. This means that the trade resulted a 0.46% to the overall portfolio.
- Position Open Time (Trading Days): 44
- Position Open Time (Days): 66
overall market
Overall market was on the uptrend the whole time. Until November 2023, it had been somewhat volatile but then the so-called Santa Claus rally preceeded and this brought more positivity to the market.
summary of the trade
Profit target: 309.60, Actual outcome: A valuable lesson in patience and volatility. Well, they say the best things in life are free, but I bet a little more profit wouldn’t hurt either! A 0.46% increase to the overall portfolio is like finding a dollar in your winter coat. A pleasant surprise, but I won’t be retiring on it.
In summary, the Visa (V) trade provided valuable insights into trade management. Despite the profit falling short of initial expectations, it underscored the importance of adjusting stop-loss levels to protect gains and manage risk. The trade contributed positively to the overall portfolio, and the key takeaway was to remain vigilant in a dynamic market environment.
conclusion
Visa (V) trade was like trying to catch a butterfly with a fishing net – it didn’t quite go as planned, but it sure was entertaining! While my profit dreams didn’t quite take flight, I did manage to learn a few tricks.
Sure, the 0.46% boost to the portfolio might not buy me a yacht, but it’s a bit like finding a nickel in your couch cushions – not life-changing, but a pleasant surprise nonetheless.
So, in the grand scheme of things, the Visa (V) trade turned out to be more of a comedy of errors than a blockbuster hit. But hey, it taught me to always keep my stop-loss on a tight leash and stay on my toes in this wild world of trading.
