I’ll be away from my trading turret Tuesday, and wanted to update my online trade in MPEL - Melco PBL Entertainment (Macau) LTD. before Wednesday. I was looking for continuation in the trade, which did not happen. This is a good lesson in not turning a winner into a losing trade. I had doubled up on my amount of risk before the close Thursday. You can see the stock never really rose above my add point around 20.05.

My first entry was 19.55, and I really didn’t want to see that entry turn into a loss after not taking 1R profit on the trade. When the stock broke that entry I sold the whole position.

1. Never turn a winner into a loser.

2. Keep your losses small.

MPEL may not break the bottoming tail I believed it put in. I know though, that by following rules 1 and 2, that I will stay in this game much longer. Keep an eye on the daily chart for the higher high buy signal.

I see an ETN started trading on the NYSE this week, INP - iPath MSCI India ETN. I’m making reference to it, because I believe it will be a good way to trade India stocks in the future. Barclays PLC launched the exchange traded note which is linked to the MSCI India Total Return Index. This is a free float- adjusted index which consists of the 68 largest Indian companies by market cap listed on the NYSE of India. reference

‘The purpose of ETNs is to create a type of security that combines both the aspects of bonds and exchange traded funds (ETF).’

I haven’t been watching the India sector of stocks close lately, but I want to keep this one on my trading radar. I’ve traded the stocks of several India companies in the past, and remember there were some good traders in the group. Barclays INP - iPath MSCI India ETN will be one to watch when the patterns begin to emerge. It has too small a trading range for me currently.