PEM
Got home today and found out I got stopped out for PEM, 2,400 @ $4.398. I had my trailing stop loss at 5% trailing 1% (Now I know this is way too tight, especially for PEM) PEM usually trades about 3% within a day. So what happened was PEM ran during the day with my trailing stop following 1% behind. Then PEM closed down for the day forcing my stop to get filled.
I would have like to hold on to PEM for much longer, I can see PEM going to $4.80 easily. Anyways I have learnt my lesson, that being said, this was a good trade.
Trade Summary
24 APR 2007 Buy 2,400 PEM @ $4.21 for $10,106.40
04 MAY 2007 Sell 2,400 PEM @ 4.398 for $10,555.20
Profit $488.80 (there is about $20-30 which I haven’t included)
Lesson: Put your stop loss at least twice the average trading range. i.e. average(high price - low price) * 2
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