$JNJ

Johnson & Johnson ($JNJ)
Healthcare | Drug Manufacturers — Major | USA

The first trading idea was a short selling of Johnson & Johnson stocks ($JNJ) (see pic. 1).

Pic. 1. Johnson & Johnson ($JNJ). Daily. (Forecast)

The result is shown on the pic. 2

Pic. 2. Johnson & Johnson ($JNJ). Daily. (Results)

We sold the consolidation right after the first descending impulse. 
It’s a standard sell setup. The target was set at the level of 111.8. 
In the beginning of the trade everything went well, but then, when price reached 200-MA, it bounced up and showed some signs of potential reversal. Considering our trading system, we decided not to move stop-loss lower in the break-even and not to close the trade until $JNJ trades lower main downtrend line. Unfortunately, several days later, it was broken with breakaway gap, so, we had to fix a small loss. And it was very funny, when after this annoying loss of our position with 3% paper profit, price at last started to decline and reached our target.

Loss from this recommendation = appr. -0.54% in 17 days (-11.4% annually).

The lesson is =>

  1. Sometimes market behaves not as you expect and you can lose a good trade. Do not care about it. Take care about the risks and money management. In long-term it is the key to success.



SOURCE

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