Stocks Trading Journal for Monster 5th Wave Trade on FB
Stocks Trading Journal FB
This stocks trading journal is a review of a Long 5th wave trade on FB. Before markets opened, on 25 January 2019, we posted a video for a potential Long Swing Trade for $FB. The original Signals Video can be viewed >>>HERE<<< . The Signal came from our Elliott Wave Indicator Suite for the FaceBook Inc Stock on the 60 minute time-frame. In the video I mentioned this was a play into earnings.
In the original chart screenshot below we can see that the FB has found support in our automated probability pullback zones on its wave 4. This indicates an 85% probability that the 5th Wave will go on and make a new High in this current Bullish trend. The Pullback zones are part of our Elliott Wave Indicator Suite. Our Stocks swing trading strategy involves trading the 5th Wave of the Elliott Wave sequence, as it is the highest probability move in a “with trend” trade. The original chart shown below shows the setup with a Long entry price of $147.12 with Stop below the Wave 4 low at $142.47. Our automated 5th Wave Target zone in Blue was around the $156, giving a Risk to Reward of 1:1.8.
Below this chart is our commentary on how the trade went and trade management decisions.
(Click on Chart to open full size in a new window)
FB Stocks Trading Journal – What Happened Next
Price gapped up just above the long entry on the 26th January. So our trade was triggered within the first hour as the price moved through our entry order. There was no real movement in the price over the next 3 days of swinging this trade. On the 3oth the price had a run up into the close. Earnings was after the Bell on the 30th, so we took half of our position off with profit and let the rest ride with earnings. Facebook Inc had great earnings data that night and gapped up massively in post market trading. During the Pre-Market stocks trading session the price moved up further. It was decided to close the rest of the position just after the open at the 400% profit x Risk line as per the chart below.
This was a Great call by our CEO, Paul Bratby, who called this live on Twitter before the trade triggered. You can watch replay HERE. One of Paul’s moto’s is “You Gotta Be In It, To Win It” and this is a great example of this. Sensibly we took half the position off before earnings to bank decent profits. Then with Paul’s advice we left half the position on as everything pointed to good earnings. This was the case and the gap up made this yet another Monster trade that Paul has called out.