Here We Go: Sears Holding - Take Two
Last time around, this trade on Sears Holding (SHLD) didn't work too well. This time around, I'm taking a different approach to this trade. Instead of buying on the breakout which is what I did before and got burned on the head-fake it did, I'm buying on the pullback to lower channel of the uptrend.
That allows me to keep risk tight (about 4% max) while possibly benefiting from a move that could go to the upper channel at around $64.00. That gives me about a 3:1 reward to risk ratio which is ideal.
I scaled in to this one as well and my buy-in price is at $56.50 with a stop at $54.48.
Here's the SHLD trade setup.