WFAD #35
$FCX & $PLD
$FCX
Freeport-McMoRan Inc., $FCX [NYSE]
Basic Materials | Copper | USA
The first trading idea was buying stocks of Freeport-McMoRan Inc. ($FCX) (see pic. 1).
The result is shown on the pic. 2
The Idea was to buy a pullback to the neckline. We had this pullback and went long. Several days later $FCX went up and there was a day, when it gained 8%. We immediately moved our stop-loss higher to protect paper profits. Right after that day, $FCX price gapped down -5% and correction or maybe a new downtrend began. Several days later $FCX price has broken uptrend line and confirmed the downtrend. We had to close this trade. Our target was not reached.
Profit from this recommendation = appr. +15.98% in 45 days (+127.84% annually)
The lesson is =>
- If market started to go against your position and something is going wrong with your plan, take your profits (if you have any) and go away.
$PLD
Prologis Inc., $PLD [NYSE]
Financial | REIT — Industrial | USA
The second recommendation was to buy stocks of Prologis, Inc. ($PLD).
(see pic. 3).
The result is shown on the pic 4.
We made an attempt to join the local uptrend. Price of $PLD was higher, than 200-MA and 50-MA. We just bought a break of a local high after price made a pullback to the base of 2-bot. pattern. After that we did not see any activity of buyers and there was no impulsive move up. $PLD formed a 7-days bearish pennant. That was the first signal for selling. But we were in a long trade! Of course pennant could be a false one. It was possible, but in the end pennant was broken down. We stopped the trade. The idea with going long failed.
Now $PLD market looks bearish (see pic. 4). We will wait out a correction and then take any suitable sell opportunity.
Loss from this recommendation = -1.73% in 12 days (-51.9% annually)
The lesson is =>
- If the basis for your trade has become invalid, stop the trade. Sometimes reversing the trade can be profitable.
