Shared by
James-H-Moore_BOWS
Good- I knew I missed the big early morning short on this, but I was just $200 shy of my daily goal and this stock was the only sure way to get there. Took the short when NUGT pulled back to the 9EMA resistance risking only $0.02. I covered and entered long at price support. I cleared $62 more than I needed to meet my daily goal while keeping risk minimal ;)
Bad- Covered and entered long early. The exit weren't the best. Didn't time the bottom properly.
Lesson- Watch for key levels of support and resistance to enter and exit stocks. Always trade the stocks that are showing the most desirable patterns on multiple time frames.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-05-27 14:42:00 | NUGT | sell | $70.460 | short |
| 2016-05-27 14:59:00 | NUGT | buy | $70.090 | 0 |
| 2016-05-27 15:03:00 | NUGT | buy | $69.810 | long |
| 2016-05-27 15:45:00 | NUGT | sell | $70.200 | 0 |
Comments
James-H-Moore_BOWS
The support and resistance level aligned on multiple timeframes and the pattern was recognizable. Typically, the 9EMA isn't as realiable after the first couple hours of trading. However, it is important and should never be ignored (that's why it's on your chart). NUGT tapped the 9 once then pulled back, I took the short on the second tap of the 9 (two taps are for suckers-Kunal) and it alligned on multiple time frames.. I covered and went long when NUGT fell back to price support, which aligned on the 4 time frames (1,5,30, and daily). Also, you must keep in mind that NUGT is a beast. Kunal always says "live by the NUGT, die by the NUGT" most people die because they fail to identify the trend, they don't allign across multiple timeframes, and they underestimate NUGT's ability to bounce during bearish moments. I choose not to die by the NUGT, so I put in the extra work and analyze the price movement.
Leave a comment about this trade!
You need to log into your Tradervue account to leave a comment. If you don't have one,
it takes
just a few seconds to sign up, and it's free!
The 9 EMA isn't as important during this time of the day. There was a good level of resistance around $71 from the last low. Why did you long it after your first trade?