Most traders would expect to strike gold on every trade they make. Indeed this does happen from time to time but don’t expect it.
This trade was recently completed and indeed was one of those which went right from day 1 and never looked back, but it is out of the norm.
I post this so that all traders, especially newbies in particular don’t have the false illusion that every trade will work out like this one. The good usually comes with some bad, and this evens out your long term results over time.
Of course I appreciate trades like these, but they are not the norm and to expect trades like these on every occasion will leave you feeling disappointed and disillusioned with trading.
Here is the result of this trade;
Trade Exit –BITA, Biauto Holdings
Stock Exit @ $57.51 on 15 April 2015 (Blue Shade).
Stock Original entry @ $50.10 17 Mar 2015 (Green Shade).
Total Return on Investment (ROI) of +14.79% or +186.16% annualised.
Duration 29 days.
Reason for exit;
Stock demand exceeding normal levels in the short term and hence a high probability of price reversal over the coming days.
Company is of long term fundamental investment quality but well over valued and hence was only a short term trade which has been completed.
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