In this article, I am going to show you how I made a 9.85% profit with BHVN in just one day.
It’s like finding a rare, shining gem in a vast, murky mine. While such triumphs can happen, they’re the trading equivalent of striking gold—exciting but not something to bet the farm on every day. Let’s embark on a journey through the meticulous world of trading, where chart reading prowess, strategic stock selection, and risk management reign supreme.
Setting the Stage
The Morning Huddle
On the morning of March 4, 2024, I decided to court Lady Luck with a stock named BHVN. Here’s the play-by-play:
- Jumped in at $51.39, with the hope of not just participation but conquest.
- Placed a stop loss at $49.30, my safety net in this high-flying acrobatic act.
- Set my eyes on the prize—a profit target of $61.67.
Like a seasoned captain charting a course through turbulent seas, I was guided by the market’s confirmed uptrend and an RS rating of 98, signaling a strong tailwind.
The Midday Review
Midday, a time to reassess:
- The RS line trend pointed up, a bullish whisper in a trader’s ear.
- Industry rank at 5 out of 197—standing tall in a crowded field.
- With a volume U/D ratio of 1.0, I knew I wasn’t alone in this journey.
The Closing Bell
The Evening Reflection
As the day closed on March 5, 2024:
- The stock bid adieu at $57.50.
- The market’s mood remained upbeat, and my chosen champion, with an RS rating of 99, didn’t disappoint.
Yet, the victory was bittersweet, as the stock’s dance with volatility cut my celebration short.
Harvesting Insights
Savoring the Wins
- Re-entering the fray when BHVN flexed its muscles was a stroke of strategy.
- Elevating the stop loss was like tightening the rope on a high-wire act, ensuring a safety net was in place.
Lessons from the Trenches
- The market’s volatility is like a stormy sea; navigating it requires a sturdy ship and a steady hand.
- Setting a cap on revisiting non-traditional picks is akin to not overindulging at a feast—moderation is key.
details at a glance
Opening
- Underlying: BHVN
- Date: 4 Mar 2024
- Underlying Price: 51.39
- Stop Loss: 49.30
- Profit Target: 61.67
- Market Outlook: Confirmed uptrend
- RS Rating: 98
- RS line trend (U/N/D): U
- Industry Rank (X / 197): 5
- Volume U/D Ratio: 1.0
- Position risk, %: 4.03
- Position Risk to NL, %: 0.19
- Potential Profit (position), %: 19.81
- Risk to Reward Ratio: 0.20
- Position size, %: 4.62
- “Why did I open this trade at that point?”: Another try. The stock broke to a new high with strong volume.
- “Was it an ideal buy? If it was, take a screenshot”: No. The price was not in the buy zone.
- Remarks: Very tight stop-loss and small position.
Closing
- Date: 5 Mar 2024
- Price (close): 57.50
- Market Outlook: Confirmed uptrend
- RS Rating: 99
- RS Change: 1
- Remarks: The stock price had a rapid advance in just one day. The next day, it became a bit volatile and stopped me out. I need to decide whether to buy it again.
Results
- What went well?: I bought the stock back once I noticed it broke to a new high with strong volume. I raised the stop-loss during the trade, which essentially guaranteed a profit.
- Cause of Error / IMPROVE: I should establish a rule for returning to non-CAN SLIM stocks (e.g., a maximum of 3 times per month).
- Lessons Learned: Trading this stock confirms that it’s challenging to trade during volatile periods.
- Position ROI, %: 9.85
- Position ROI (portfolio), %: 0.46
- Position Open Time (trading days): 1
- Position Open Time (days): 1
Charting the Course Ahead
As we sail the vast ocean of the stock market, it’s clear that while the allure of a 9.85% single-day gain is tempting, it’s the disciplined approach that truly charts the course to sustained success. Reading the market’s currents, selecting stocks with care, and managing risks with precision are the tools of the trade for those seeking not just fleeting wins but lasting achievement.
So, as we chase the horizon, let’s do so with wisdom, patience, and a keen eye on the charts, ready to seize the opportunity when it arises, but always mindful of the journey ahead. After all, in the grand adventure of trading, it’s the steady journey, not just the thrilling sprints, that leads to treasure.
