XING - Complex Trade Opportunity

I really hate penny stocks. I hate how these "penny stock newsletter" groups can make thousands of the backs of idiots that see ads in the sidebars of web pages (looks to sidebar of the blog). Never listen to these people

But just tonight, I saw a technically strong situation in a semi-penny stock XING (over $2, a personal label). Both a symmetrical triangle and ascending triangle were forming. To top it off, there was a stochastic buy in the daily chart today!

Click to enlarge image.

So here's the strategy, and I am working very carefully to manage risk. We will exploit both pattern breakouts with multiple positions. The first trade may only result in a break-even. FOLLOW ALL DIRECTIONS and enter all orders at once

Enter with a stop buy @ 2.26
Set a trigger to enter a trailing stop sell of 25 cents once the price touches 2.40
Enter the second trade with a stop buy @ 2.42
Your sell stop will be 2.28 in case this trade fails.
Enter a limit sell order @ 3.00

Risk= $0.11+$0.14=$0.25
Maximum Gain= $0.74+$0.58=$1.32
Probability adjusted Risk/Reward=
(66%*.74)+(75%*.58)/
(34%*.11)+(25%*.14)=.9234/.0724=
12.75 (favorable)

Our risk is limited and defined very well here, so take the opportunity. Do not be tempted to over-leverage yourself just because the stock is cheap.

Happy Trading
~Christopher Diodato