Tuesday, May 1, 2012

Riverbed Technology (RVBD)

BUY signal the week of 1.17.12 at $28.63. My first stop was $19.82, so my risk (R)/share was $8.81. Closed the week of 4.16.12 at $19.85, not even close to my $22.24 stop. The percentage loss on this trade was -30.7%, and the reward-to-risk ratio was -$8.78/$8.81 = -1.00.

History (beginning in 2006):
Winning Trades: 1 | 50.0% | +$23.95/share avg.
Losing Trades: 1 | 50.0% | -$8.78/share avg.
Average Trade: +134.7% | +$7.59/share | Reward-to-Risk (R): +3.19

Like my recent Netflix trade, this is a very good reminder to always stick with my 1% risk/position-sizing model. 

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