NoiseTrader's "Let Profits Run" Series: Long BA

Discussion in 'Journals' started by NoiseTrader, Apr 2, 2006.

  1. NoiseTrader's "Letting Profits Run" Series: Long BA

    Managing a longer term position (maximizing profits) is one of the most difficult challenges and a skill I'm still trying to get better at.

    In this thread I’m going to document some of the thought processes involved in trying to let profits run in a long BA position.

    The initial entry was on 1/26. After the taking partial profits, a quick rotation up in early Feb 06 resolved into a tight, well-bid market. I kept a loose stop on the core long, until offers began to soften up prices a bit in early Mar.

    BA built a fair amount of trade above 72 hardening up 72 as support. I raised my stop up to 71.77 where it still sits.

    We saw range extension up to 80 in March and now faced with a trade-off between keeping the stop loose and staying outside of the control of liquidity or liquidate and try to sidestep a deep retracement and risk minimizing participation in any further rally.

    The tight bids in the monthly timeframe argue for a high level congestion whereas the end of the Oct-to-May bullish period for stocks may open up a downside surprise. To be continued…
     
  2. Relevant BA Daily Chart