NEW SHORT-TERM TRADING TECHNIQUE

I am working on a new system that trades both long and short positions that will only be held for a week or two.  The goal is to get a 10% return on each trade while risking about 8%.  This is arbitrary so don't stick hard and fast to these numbers.

Here is the first trade on this system.  SHORT - DFS.  Click on the chart to see the explanation.

Click on the second chart to see the explanation of this losing trade.

So this one triggered my stop loss as the stock rose to new highs and knocked me out for a 4.9% loss.  That is why stop loss orders are absolutely necessary or do the technique I teach by "buying" insurance.