I was surprised at the harsh downdraft of AAPL today; you don’t get to see a 4-5% drop of AAPL on a regular basis. Now with most of the trading day almost over, I see AAPL is forming a minor V shape on a 5 minutes chart.
Knowing where I put my stop, which will provide me a low-risk swing trade, allows me to execute this trade easily. Of course, there is a good chance I’ll get stop out but it is the idea of a low-risk trade that make the trade easy to execute.
Below is the 5 minutes AAPL chart:
If I don’t get stop out today, I’ll ride this trade to tomorrow.
Edit: Just got stop-out for small losses. This trade is OVER. I will not try to find another bottom to catch. The fact that it also took out intra-day low does not bode well for AAPL.
This post was originally posted at iBankCoin by me.