#TradingOperation
### **Trade Setup: Buying Apple (AAPL) Stock**
#### **1. Market Analysis**
- **Fundamental Analysis**: Apple has strong earnings growth, a solid balance sheet, and new product launches (e.g., iPhone 16).
- **Technical Analysis**: AAPL breaks out above a key resistance level at **$190** with rising volume.
#### **2. Trade Execution**
- **Entry**: Buy 100 shares of AAPL at **$192.50** (market order).
- **Stop-Loss**: Set at **$185** (risk of **$7.50 per share** or **$750 total**).
- **Take-Profit**: Target at **$210** (based on prior resistance level).
- **Risk-Reward Ratio**:
- Potential loss: **$750**
- Potential gain: **$1,750** (if AAPL hits $210)
- Ratio: **1:2.33** (favorable).
#### **3. Position Management**
- **Trailing Stop**: Adjust stop-loss to **$200** if AAPL reaches **$205** (locking in profits).
- **News Monitoring**: Watch for earnings reports or Fed policy changes.
#### **4. Exit Strategy**
- **Scenario 1 (Target Hit)**: Sell 100 shares at **$210** → **+$1,750 profit**.
- **Scenario 2 (Stop-Loss Triggered)**: Sell at **$185** → **-$750 loss**.
- **Scenario 3 (Time-Based Exit)**: Close trade after 2 weeks if no movement.
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### **Trade Summary**
| Metric | Value |
|-----------------|--------------|
| Entry Price | $192.50 |
| Stop-Loss | $185.00 |
| Take-Profit | $210.00 |
| Capital at Risk | $750 (1.5% of $50k account) |
| Risk-Reward | 1:2.33 |
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### **Key Lessons**
1. **Always use stop-losses** to limit losses.
2. **Risk management** (e.g., risking only 1-2% of capital per trade).
3. **Stick to the plan**—avoid emotional decisions.
