The Bioventus, Inc. (BVS) trade produced a bit of drama in yesterday’s session, let’s take a closer look, writes Ian Murphy of MurphyTrading.com.
Working with a $20k account, and risking the maximum of 2%, let’s say the entry on July fifth was at the closing price of $7.45.
I know some of you entered at a lower price, but let’s work with the worst-case scenario.
Click the chart to enlarge
The initial protective stop was at $6.56, meaning the trade size would have been 450 shares. Half the position was sold at T1 ($7.92), and the lowest price yesterday was exactly where the trailing stop was at $6.80.
If you were filled in full, (some were, some were not) this gives a loss of $40 or 1.2% on the position and 0.2% on the $20k account. If you are still in, the stop has flatlined at $6.80.
Learn more about Ian Murphy at MurphyTrading.com.
