Chapter 1.3: Now

It's been crazy for the past couple of weeks.

At a certain point, NOW was mooning but on the next day, price plunge down to nine-ish.

Lets review.

Chapter 1.1: Now

My plan was to either buy @ the support level of 6.89 or buy @ the breakout. On 05.23.18, it did breakout from our darvas box. Assuming i was able to bought @ 9.21 and sold on 05.25.18 for 10.57, i would have gained a profit of 14.45% on my first order.

Chapter 1.2: Now

In this trade, i mentioned that i will buy @ the opening price which is 11 and sell it in tranches on the resistance;note that this is on 05.28.18. The problem is how to  identify my TP and set my tranches? Hmmm. good thing i didn't enter this trade in real life ahahaha.

Well, if you think about my trading strategy, it's plausible if i said sell it all on the midline support but i didn't because at that time i don't know how to plan my sells. I was mainly focusing on my chart analysis.

So it made me review ZF's blog, and i realized two things.

Let's say i was able to trade on 05.28 and bought it @ 11. Now, what are my selling price if my darvas box was this (the one i originally made up). If i have to sell in tranches, then my Tranches are the following.

1. 11.75
2. 12.75

These prices corresponds on the FIB. Arrow showing on the image below is the date i bought the stock per se.

If we followed this plan, I would have bought @11 , sold some shares @ 11.75 and since price went down and didn't reach 12.75, will likely sell @ 11 as well for the remaining shares. 2nd tranche will either be a loss or draw trade :P.

This setup requires intraday trading which would be a challenge for me as i have a day job and i might have some profits but naging bato pa scenario hahaha.

So i reviewed ZF's blog and i realized how important to have a trading strategy. I also figured out a way for my TP.


So lets ride on our time machine. This is the beauty of trading not real money yet as we learn and not incur any loss YET.

So from this chart to this the chart below.

Woaahhh! What just happened? Let me explain it to you Mr. Author in case you will be back reading this in the future hahahhaha.

First darvas box is correct. Now we move our DB's resistance @ 10.39 as you can see on the red candle on the left hand side on the breakout.

So in this trade, what you should have done is the following.

Note: Assuming that we allocated 25K for this stock.

1. Buy @ the first breakout. 9.30 amounting to 12,500 which is 50% of budget.
2. Buy second tranche @ 9.74 @ 7,500 (30%)
3. Buy third tranche @ 10.39 @ 5,000 (20%)


We set our TP as advised by ZF blog. In this way, we can maximize our profit and also buy @ tranches to preserve capital.

Let's see if i can apply this to other Stocks :)

Adios amigos