Stock Trading Journal SQ
Please continue to read down as this is a live stock trading journal and will be added to as Paul continues to manage the trade
This stock trading journal is a review of a Long Swing Trading Breakout on SQ. Before markets opened, on 17 January 2019, we posted a video for a potential Long Swing Trade for $SQ. The original Signals Video can be viewed >>>HERE<<< . The Signal came from our BlackBox Breakout Indicator for the Square Inc Stock on the 240 minute time-frame.
In the original chart screenshot below we can see that the SQ Stock had already broken out of a medium term bearish trend channel. On the 15th January 2019 we had a Long Signal on the 240 minute time-frame for $SQ so we shared our stock trade Idea as part of our Free Daily Stocks signals video service. After the Markets opened on 17th January, the $SQ Stock had a breakout move up through our entry price. Therefore we were well and truly into this Long Swing trade. This Stock Trading Journal is a live blog post as we manage this Breakout Trade on $SQ. Check below this original Chart for trade management updates.
SQ Stock Trading Journal as of 25 January 2019
Our Long Swing Trade on $SQ hit our first resistance zone and potential target level around $74 on 24 January 2019. This move was with increased volume and closed near the high, so we carried the trade over. Together with a large range on the 24th January, we were confident that the Bullish momentum was picking up. The price gapped up on the 25th January and continued to rise during the trading session.
The Daily chart below has our Black Box breakout Indicator showing green candles on the 24th and 25th of January. Part of our Black Box Breakout indicator is measurement of volume for each candle. A Grey candle is a bullish day but with reduced volume compared to the day before. A Cyan Candle is a Bearish day but with reduced volume compared to the day before. A Red Candle is a Bearish Day with Increased Volume compared to the day before, a Distribution Day. A Green Candle is a Bullish Day with Increased Volume compared to the day before, an Accumulation Day.
As you can see below, the 24th was an accumulation day. Then the 25th had even more volume than the 24th as indicated with another Green Candle. Therefore another Accumulation Day. This allows us to identify strong bullish momentum and make trade management decisions. We cover more of the theory in the Training Bootcamp that accompanies our Black Box Breakout Indicator. Below this chart is our trade management strategy….
SQ Stock Trading Journal – Trade Management Strategy
Moving into week commencing 28th January we have decided to be reasonably aggressive with our trade management strategy. Remember we are trading the $SQ Stock on the 240 minute time-frame. We like to employ a “two candles back” trade management approach when we want to lock in good profit on a trade. In this case we also have to consider the support and resistance zone around $74 mentioned in the original Signals Video. With this in mind, we have placed a trailing stop at $73.74. Therefore below both the S&R zone and the low of the 2nd candle back. As per the chart below.
The next resistance zone is up around $83, so lots of fresh air for this swing trade to go at. There could be a possibility of a pullback to test the previous resistance eve at $74, which should act as support. Hence the position of our trailing stop. We will continue to update this stock trading journal as the trade progresses So please come back and check below the next chart for further updates.
SQ Stock Trading Journal as of 15 February 2019
During the pre-market session on the 29th January 2019 the SQ stock price was gapping down on news. This gap would have been below my trailing stop position so I adjusted back to original stop loss position. As it was still above the entry and confident of this current Bullish move was willing to let it run and find support.
The price then started to move back up over the first half of February. Going on to test and break the previous resistance level around $74. Once above this level I placed a more conservative Trailing stop at $69.64 to lock in 50% profit x Risk. As per the chart below on the 15th February 2019.
Earnings for the SQ Stock is on the 27th February 2019 so I have a little time to let this trade run before making a decision on managing profit and Earnings.
SQ Stock Trading Journal as of 22 February 2019
Last week the price continued to hang around the $75.38, 200% line for the SQ Stock. Although Bullish momentum seems to be with this stock, we may see some rangy price action going into earning on the 27th Feb. I have been more aggressive with the Trailing stop now and locked in 160% profit x Risk ($73.85). This is below the pivot point formed on the pullback during 21 Feb. As per the chart Below.
The SQ Stock does seem to have found a short term resistance level and will need good earnings as a catalyst to push through it. The next resistance level is all the way up at $83. With this in mind my strategy for managing through earnings is gong to be a conservative strategy.
SQ Stock trade management strategy through Earnings
Earnings for the SQ Stock is after the markets on the 27th February. Therefore, before the markets close on the 27th February I intent to take half of my position off. Now this could be before the 27th! My aim is to take off half the position at or above $75.38. This is the 200% profit line for whole position and so for half a position would bank 100% profit x risk. Once I have done this, I intend to throttle back the trailing stop back to $69.94 to allow for Earnings reaction. This still locks in 25% profit x risk on the remaining half position.
Obviously if the current trailing stop position is taken out prior to earnings I will bank the 160% profit x Risk. I will update this trading journal as things unfold.
(Click on Chart to open full size in a new window)
SQ Stock Trading Journal as of 27 February 2019
As per my plan I have taken half of position off at $79.21. This is the 300% line but only half position gives 150% profit x Risk in the bank. At this stage I will leave the trailing stop at $73.85 locking in a further 80% profit x Risk for the rest of my position. I have changed my thinking on this as the post market reaction to earnings was negative. Also, a move through $73.85 will be below our EMA cloud on this 240 min time-frame. The fist time since the trade was entered. I will obviously keep a close eye on this during the pre-market session on 28th and make a final decision.
(Click on Chart to open full size in a new window)
SQ Stock Trading Journal as of 05 March 2019
A big bearish session in the Markets on the 4th March took its toll on the SQ Stock Price. There was a large move down to take out our Trailing Stop, as per the chart below. The 2nd half of the position was taken out at 80% profit x Risk. So a total for the whole trade of 230% profit x Risk. So with an initial risk of $10,000 and total profit on closed trade of $23,000. We will now be using our Multiple Time-Frame strategy, from our Elite Training Course, to look for further trades in the near future.