Yesterday, the online stock trader was day trading Marathon Oil Corp. He also bought shares in the company to hold as a swing trade. Let’s analyze that stock trade.
The stock was entered at the same time the day trading position was executed at 87.78. A stop loss order was placed below the low of the previous day’s candlestick at 85.65. This made the risk, R at around 2 points. The daily chart here shows a nice follow through for Marathon Oil Corp. Where did the online stock trader exit? Or did he exit?
Because a major stock market moving decision was going to be announced, the stock trader decided to take 1R on the trade if possible. This was done to avoid sharp market gyrations which you can see on the 5-minute chart of Marathon Oil Corp. This was not a wise choice. The stock trader pulled the trigger too soon, and should have let the stock make pivots and use a trailing stop methodology. The stock ran as high as 91.55. The stock trader must remember to keep trades active longer on these type of days. Let pivots stop out the stock position.
The stock trade was succesfully executed, but could have possibly been better.
