Imagine embarking on a voyage across the vast, unpredictable ocean of the stock market. My vessel? A well-researched position in PHM, with sails set towards the promising horizon of profit, guided by the stars of market indicators.
Setting Sail: The Initial Strategy
- Voyage Start Date: January 31, 2024
- Port of Origin (Opening Price): $107.50
- Guiding Lights: Favorable position near EMA 21, signaling a strong current to carry us forward
- Treasure Island (Profit Target): $129.00
- Lifeboats Ready: A stop loss at $101.05, our safeguard against the unexpected squalls
Encountering the Unexpected: Market Maelstroms
The sea of the market is fickle, and soon, my journey with PHM encountered unforeseen turbulence. The stock’s volume began to wane, and its Relative Strength (RS) line trended downwards—a storm I hadn’t anticipated.
Navigational Adjustments: Correcting the Course
- Port of Call (Closing Move): Sold at $102.91 on February 8, 2024
- Weathering the Storm: Despite a hopeful uptrend signal, the undercurrents proved too strong, leading to a reevaluation of my strategy.
Charting New Waters: Lessons from the Deep
- Misjudged Currents: Holding my course, despite the EMA 21’s warning signals, was a captain’s error.
- Charting a New Map: My trading to-do list now includes a more detailed analysis of volume trends and RS line indicators.
The Captain’s Log: Reflecting on the Voyage
Here, I’ve distilled my reflections into navigational wisdom for future expeditions:
- Quick to Pivot: The importance of adjusting your sails as soon as the wind changes direction.
- Heeding the Seafarer’s Warnings: Recognizing and respecting the early signs of a market shift.
- The Living Map: Keeping the trading plan dynamic, incorporating new insights and strategies as the journey unfolds.
Sailing into Uncharted Territories
The stock market, much like the open sea, is a realm of endless possibilities and unforeseen challenges. My venture with PHM was a reminder of the necessity for adaptability, vigilance, and a comprehensive, ever-evolving to-do list.
The Compass of Continual Learning
- Expanding the Horizon: Every trade, win or lose, offers invaluable lessons for the intrepid trader.
- The Charted Course: Developing a nuanced understanding of market indicators and economic signals is crucial for navigating through volatile waters.
details at a glance
Opening
- Underlying: PHM
- Date Opened: 31 Jan 2024
- Underlying Price at Opening: $107.50
- Stop Loss: $101.05
- Profit Target: $129.00
- Market Outlook at Opening: Confirmed uptrend
- RS Rating: 95
- RS Line Trend: Down (D)
- Industry Rank: 27 / 197
- Volume U/D Ratio: 0.9. This means that the stock was under slight distribution
- Position Risk: 5.94%
- Position Risk to NL: 0.29%
- Potential Profit (Position): 19.82%
- Risk to Reward Ratio: 0.30
- Position Size: 4.91%
- Reason for Opening Trade: Price was near EMA 21 and trending up, in a leading industry
- Was it an Ideal Buy: No, the stock was not in the buy zone.
- Remarks at Opening: SEPA stock, small position
Closing
- Closing Date: 8 Feb 2024
- Closing Price: $102.91
- Market Outlook at Closing: Confirmed uptrend
- RS Rating at Closing: 94
- RS Change: -1
- Remarks at Closing: Stock had been below EMA 21 for several days.
Results
3 things that went well
-
- Sold decisively without waiting for a stop order.
- Buying close to EMA 21 was a good decision.
- The price action of the stock had been quite stable, and bases have been relatively low.
3 things i need to improve
-
- I should have sold earlier. It’s not reasonable to wait for several days under EMA 21 for the stock to recover.
- I shouldn’t buy stocks whose up volume is less than down volume.
- Also, I shouldn’t buy stocks whose RS line is in a downtrend.
- Position ROI: -6.07%
- Position ROI (Portfolio): -0.30%
- Position Open Time (Trading Days): 6 days
- Position Open Time (Days): 8 days
Conclusion: Mastering the Art of Market Navigation
In the vast, tempestuous ocean of stock trading, success lies in the ability to adapt, learn, and chart a course with precision. My experience with PHM has not only added valuable lessons to my navigator’s toolkit but also reinforced the importance of a living, breathing to-do list—my compass in the ever-changing tides of the market. This journey, while challenging, has honed my skills, preparing me for whatever the market’s waters may hold next.
