FLOW

VICL was first position that I completed round-trip, but I also purchased FLOW on the same day. It came up on my scans and triggered an alert when it approached my determined support.

I liked this support range at around 2.84 for FLOW, as it had been prior resistance in the last year which broke through it in December. It bounced off of it a few times through December before making new highs in the $4 range. Since those highs, its trickled back down and has once again bounced off of this support range. On 3/30, I took the opportunity to grab shares here.



The stock dropped pretty hard on decently large volume on 3/31 so I didn't buy right away, but I watched it on the 15-minute chart and you can see it started to build a pretty good base in this area. Since it stabilized, I decided it was worth the risk. I grabbed 600 shares at $2.85.



Stop and Target

I've once again used a stop limit order and placed it at $2.70, this is about 5.3% downside protection. The target area of next resistance is at about $3.20 range. This gives a 12.8% upside, but I can also see it trying to break past that and showing next stops at around $3.45 and then the previous highs in the $4. So, while the initial trade is only about a 2.5:1 risk to reward, I feel this $2.85 support is a lot stronger than the one from VICL. If it strongly breaks through this resistance, I may even move up the trailing stop and give up on this trade.

Now that I am already up on this trade a few percent, I am looking at implementing some trailing stops to protect my gains. I'd hate to turn a profitable trade into a losing one. I may setup a trailing stop here at the $3 for $0.15, so if the stock does move up to that $3.20 resistance, I'll lock in a $3.05 sell price which would give me a small 7% gain. After commissions, that just gets eaten away.... I may need to increase my position sizes once I get this method down. $20 round-trip on $2k is 1% of profit lost to commissions!