FSIN Revisited

FSIN is a short position identified after it had broken down, we were looking for $7.20 on a bounce to short FSIN and it's a position that I've considered a long term position, there have been some bounces and moves against the position but all in all, the daily gyrations weren't of concern, the larger pattern was.

 The weekly chart with a massive top.

The white arrows were our chance to short FSIN at $7.20. So far the gain on FSIN is 33%, but I expect this one to go way lower. The point is there were several days in which FSIN moved into the green by 7 or 8%, the idea of the trade is a long term trending trade and unless I see something that suggests something major has changed, I want to keep exposure to this position.

That's the idea behind the short candidates I've been positing. They need to be viewed as long term trades and daily gyrations can't have you stopped out, otherwise I would have stopped out of this trade 3 or 4 times already. The key to doing this is allowing a wide stop and making sure your position size doesn't exceed a 2% of portfolio loss if you have to cover the trade.

Again, I refer you to last night's post at Trade-Guild.net