Contents:
- Overview of Today’s Action
- Why This Was a Tactical Move
- Alignment with the Modified 10-Step Trading Plan
- Lessons from Today’s Trading Action
- Next Steps
- Final Thoughts
In today’s trading session (January 15, 2025), we executed a tactical exit in our Budget Ethical Trading Account (BETA) by selling 100 shares of URC at Php 70.00. This move represents nearly half of our total 210 URC shares, as part of our ongoing effort to refine our risk management approach in line with our Modified 10-Step Trading Plan. Here's a detailed review of today’s action, focusing on its alignment with our strategy and the lessons we learned.
URC 5-Minute Chart (January 15, 2025): Tactical exit executed at Php 70.00 as part of disciplined risk management under the Modified 10-Step Trading Plan.
Overview of Today’s Action
Action Taken:
We sold 100 shares of URC at Php 70.00, close to a critical support level. This tactical exit was made to reduce exposure during a volatile session while retaining flexibility for potential re-entries or further exits based on upcoming price action.Remaining Position:
After this tactical exit, we retain 110 shares of URC in the BETA account. This ensures we remain partially exposed to any upward movement while minimizing downside risk.
Why This Was a Tactical Move
The decision to sell 100 shares at Php 70.00 was guided by our tactical position management strategy, which emphasizes:
- Reducing exposure near key support levels when uncertainty is high.
- Locking in value while retaining some shares for potential gains if the price rebounds.
By executing this tactical exit, we:
- Reduced our exposure without fully exiting the position, ensuring flexibility for future trades.
- Preserved capital while remaining engaged in the market to potentially benefit from a reversal or upward trend.
Alignment with the Modified 10-Step Trading Plan
Step 5: Place and Monitor Stop Loss
Today’s action closely aligns with the updated Step 5 of our trading plan, which includes dynamic stop-loss monitoring. While we had a hard stop-loss set at Php 67.75, we opted for a tactical exit at Php 70.00—just above a critical support level—to minimize potential losses and maintain flexibility.Step 9: Tactical Position Management
This tactical exit is a direct application of Step 9: Tactical Position Management, where partial exits are executed during periods of heightened volatility or when prices approach key levels. By selling part of our position, we adhered to our plan of staying agile and limiting downside exposure.
Lessons from Today’s Trading Action
Discipline and Execution Matter
We strictly followed our predefined strategy and executed the tactical exit at a critical level. This discipline ensures we remain consistent in our approach, avoiding emotional trading decisions.Managing Volatility with Tactical Exits
By executing a partial exit rather than a full exit, we retained exposure for potential future gains while managing the risk associated with a volatile session.Balancing Risk and Reward
Selling 100 shares allowed us to lock in partial value while still holding 110 shares, striking a balance between reducing risk and staying engaged in the market.
Next Steps
- Monitor Key Levels:
We will closely observe the price action near Php 70.50 (potential tactical re-entry level) and Php 67.75 (hard stop-loss level). - Be Ready for Tactical Re-Entries or Further Exits:
If the price stabilizes or shows signs of upward momentum, we may consider re-entering a small tactical position. If the price continues downward toward Php 67.75, we are prepared for another tactical exit to protect the remaining position.
Final Thoughts
Today’s trading action highlights the importance of tactical position management in real-time trading. By executing a partial exit at a critical support level, we adhered to our strategy, managed risk effectively, and retained flexibility for future trades. This disciplined approach is a key element in our ongoing effort to refine and test the Modified 10-Step Trading Plan through our BETA account.
Stay tuned as we continue documenting our progress, including key lessons learned from this trading journey!
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
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