$FSLR, First Solar, Inc.

$FSLR, First Solar, Inc.

$FSLR Daily Chart

Trade Date: 10/27/17- 10/30/17

First Solar surprises wall street by releasing an earnings beat out of left field. Surpassing most analyst expectations from a relatively dormant industry in 2017, the company showed green across the board - 3rd quarter revenue growth, lower cost, and increased guidance. Sometimes the biggest winners are from the ones you least expect. And if your losses are small enough, even decent sized winners can wipe them out.


Trade Style: Short Term Swing Trade

Position Bias: Bullish

Technical Criteria

  • Price Change: $ +4.38 and 9.14%
  • Premarket Volume: 75,993 shares
  • Daily Average Volume: 2 million shares
  • Average True Range: $ 1.44

Entry Price & Time

            $FSLR didn't give an entry signal for the first 7 candles. Instead it just continued to shoot higher and higher out of the gate. My old self would've been itching to just pull the trigger and chase this thing higher. But years of discipline forced myself to wait. After finally seeing the break of the first red, rest candle I entered for a long. Opening range breakout pattern.

            Stocks with so much ferocity can be difficult to enter, even with an entry signal. Sometimes the move can be so strong, that it ends after the open. There's no guarantee that this stock won't continue higher. But, there's no guarantee it'll fall either. Remember, these trades won't always work, no strategy will. But when they do, you better hope to make more than when they don't. 

            Entry Price: $ 54.98

            Entry Time: 9:37 AM

            Stop Price: $ 51.68

            Risk: $ 3.30

$FSLR Entry on 1 min. chart

Exit Price & Time

            Exit Date: 10/31/17

            Exit Price: $ 60.49

            Exit Time: 3:30 PM

$FSLR Exit on 5 min. chart


Results and Evaluation

            I ended up winning a + 1.67 R, but man I wish it was higher. Sometimes when your losses are small and your wins are small, your total account value gets stuck in a range (similar to a trendless stock). Your losses are somewhat being offset, but your don't make money until a big winner comes your way. As long as you stay disciplined and listen to your rules, that big winner will come.

           For me, it came to me as $FSLR after about a month of "trendless" trading - small winners and small losers. Although +1.67 R is not much, it'll certainly do. 

Risk: $ 3.30

Reward: + $ 5.51

R Multiple: + 1.67 R