My friend sent me a Chinese Horoscope 2015 for those born in the Year of Dragon.

There is great possibility that something big & auspicious will come knocking on your door.

Wow… I can feel it now. Jan & Feb are a fantastically profitable months for me.

Let’s take a look how I managed the trade set up and played out…

Innovalue is one of my favourite trading stocks. I have made a good profit before and last week Innovalue breakout all time high.

The recently run up on Innovalue was cheaper oil prices(capex on petrochemical & drilling applications could dwindle) and USD strength(90% of it revenue is in USD).

But what do i know, I am not a materials analyst.

Let’s us turn to our chart….

There is breakout on 27th Jan at $0.5.

Volume has spike and MACD histogram has ticked up.

I entered 80,000 shares at $0.49(long).

The trade worked beautifully and on Thursday I booked partial profits.

I sold 40,000 shares at $0.525. A profit of $1,400 to buy some new CNY clothing for my wife and son.

But looking at the momentum of the stock, Innovalue is enjoying uptrend.

I re-enter 40,000 at $0.53 on the same day(29th Jan).

On Monday, Innovalue continued its up move, and I took another partial profits.

I sold 40,000 shares at $0.545, a profit of $2,200.

This profit will be Ang Bao (红包) money to give out during the CNY.

As of the end of day(Tuesday), I have a balance of 40,000 share. I will sell it in the next few days.

With the profit, I am ready to usher the Year of Goat, 恭喜发财.

What I have learn from this trade:

One of the rules I've learned in years of trading is this:

Push hard when you're ahead and hang back when you're down.

Markets go through cycles much faster than most of us change our methods.

When your methods work - lay on bigger size. When you start losing - reduce size and even consider taking a break.

Talk to you soon.

Best wishes,

Divergence Trader

PS I am having a course preview on 7th Feb 2015. If you are interested to attend, please send me an email at divergencetrader@gmail.com with the following details.

Subject: "Divergence Trader Course Preview"

Contents: Name, e-mail address and mobile number.

The post How I Managed My Trade – Innovalue (Long) appeared first on Divergence Trader.