Monday, August 27, 2012

Silver Trade (3) 17.08.2012

Add more position (8/27/2012 9:07 AM)


Entry: 30.93
Stop Loss: 29.93
Exit: ??
Position Size: 0.4
Reason: A breakout type of trade. Resistance = 30.661





8/27/2012 9:07 AM
Review
Silver breached the 30.661. Position will be added but how.

Option1
Should I put a buy order at 30.795 (previous high on 23 aug 2012) or 30.728? Since the difference is  around 7 points, I am comfortable with putting at 30.795
(-) I can't predict where the price will go in the future, it might come down and it might go up.

Option2
Should I buy it now at 30.895?
(-)Observing the price action, it seemed there is not much of gas.
(+)If I do, I will have to extend the stop loss and reduce the no of contract. Thus, I won't miss the potential upwards.

I am comfortable of doing option 2.

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