Case Study 1 - A Successful 4 day trade in CTM

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The initial decision on CTM was made based on the strong upwards trend it was in, with potential for swings of 15%. The previous high was 1020 which would give an acceptable 8% if it hit resistance at that point. See graph on left (from Sharescope).

On the 4/1 after triggering a 2% start rise alert the stock was bought at 919.5. See graph on right (StockHistory) An initial stop loss was set at 7% (giving a real stop loss of 10% after spread and costs), and a fixed alert set at the 1020 resistance level. The stop loss was reduced to 5% when it went into profit, later that day. The following day it crossed the fixed price alert but met resistance around 1030, later clearing this and reaching a net profit of 10%, so the stop loss was reduced to 3%. My usual short term target is a minimum of 10%. This was crossed on the 7/1 and the stock sold at 1075 giving a comfortable profit of 14% (a bit quicker than I had hoped for!).