Taking Profits on SCHX: A Disciplined Move
Last week, I purchased Schwab US Large-Cap ETF (SCHX) at a low price of $22.80, recognizing an opportunity during its pullback. Over the past week, the price climbed steadily, reaching $23.80, where I decided to take profits. This decision was influenced by two consecutive doji candles on the daily chart, signaling resistance at this level.
The doji pattern often indicates indecision in the market, particularly near key levels. In this case, the resistance aligns with the recent high of $24.19, further strengthening my conviction to sell. While the stock could attempt another rally, I prefer to lock in gains now and wait for another entry at a lower price.
Opportunities in trading are always abundant. Selling first and buying later allows flexibility, especially in volatile markets. It’s better to secure profits when resistance appears rather than risk a reversal. This disciplined approach is crucial for consistent success in trading.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Please conduct your own research or consult a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.$Schwab US Large-Cap ETF(SCHX)$
| Side | Price | Realized P&L |
|---|---|---|
| Sell Close | 23.79 | +1.53% Closed |
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- chocoee·01-21 23:56Great decisionLikeReport