I think SLX trade is a good example of why having patience and getting a good entry location matters. These helped position to be at risk only for a very short time. Also it helped to ride out most of the noise comfortably sitting with above 1R gain pay off in pocket (on part of the position) and risk free position on the rest.
What's next?
SLX came close to stopping out and then made strong down move today. I think general market sell off helped. SLX now is in an interesting location.
If in next couple of days SLX follows through and closes strongly below $52, then there is good chance it will go down further and we can start thinking about target-2 (see chart). On other hand, if it stalls here and starts coming up, then there is good chance it will run all way to top of range. So it makes more sense to tighten the trailing stop (2nd red bar on chart). That way should SLX come back up, we locked-in some profit on remaining position.
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