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BASiCS<br />
www.tradersonline-mag.com 04.2014<br />
Trading Journal:<br />
Steve Burns<br />
My SPy Trade Step by Step<br />
In the trading journal, traders – from beginners to professionals – present one of their<br />
trades that taught them a special lesson. This time it is Steve Burns, professional<br />
trader, author and blogger.<br />
» First Entry<br />
For the sake of simplicity all dollar amounts are rounded<br />
in this article. I was trading SPY which is the SPDR ETF<br />
on the S&P 500 Index (see Figure 1). SPDR funds belong<br />
to the ETF family of State Street Global Advisors (SSgA).<br />
My first entry spot was with a break above the 10 day<br />
on September 4th with $130,000 position size (50 per cent<br />
of the account). This was the first day out of 18 that price<br />
broke over the 10 day moving average line. In essence<br />
this was a breakout trade out of a range after the 100 day<br />
moving average held as support at $163. With 50 per cent<br />
of my account at risk then a big two per cent fall in the<br />
index would still have only been a one per cent total loss<br />
of trading capital keeping risk managed.<br />
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