On May 14, 2013, we received an Ichimoku 7 time frame Buy Email alert on the stock PBCT , People’s United Financial Inc. The email is shown below:
The trade was setup on a 30 minute time frame. The entry was 13.57, initial risk of 13.50, and preserve mode value of 13.73. The min. reward would be 0.16 and a max risk of 0.07. This is a 2:1 reward/risk ratio. Here is the chart setup:
Since the trade was only min. 2:1 reward/risk ratio, we DID NOT take the trade. Our money management rules only allow us to take 3:1 reward/risk ratio trades. If we had entered, we would have exited the trade at 13.75. The trade did win but they don’t always.
If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.
