This morning we booked a solid 3% win in Facebook stock. Here is what we can learn from this winning trade.
Stalked it around the $149 to $150.50 support level to see if it held, and text’d Premium members what I was doing. When heavy buying came off this level intra-day, I went long Facebook stock…
April 4, 2018 was a bit too creepy for me. Stock fell below my cost basis and I was looking to exit the trade if the $149 to $150.80 support level broke. It held and I breathed a sigh of relief but my confidence in Facebook stock was shaken. Facebook stock did not have the heavy buying characteristic of a ‘V’ bottom bounce.
The 3% win was actually a 12% win for me as I maxed out my margin on the trade. Etrade offered me a 4-1 margin (for every $1 in cash, I can buy about $4 of Facebook stock) level on the trade which is their highest level of margin offered.