NUGT Trade on May 27, 2016 11:15 from josephhackett_BULLS: Tradervue User Stock Trades.

I bought NUGT..."REASON TO ENTER": was based on the fact that thus far NUGT support has held in this area since mid. April....this was truly a trade that could have gone either way at that test of support and there was no real set up unless I labeled it a "bounce off support" for that reason my "RISK/POSITION SIZE" tolerance was tight at .20 or $50. max. loss.....I scaled out quickly as NUGT trades very erratically....My "REASON TO EXIT" was triggered by a stop I had placed at $74.30's...based on what I thought was a new support......NUGT triggered my stop and I was out of the trade....I shifted my focus and went on to possibly enter a trade in RLPY....shortly after NUGT had a $5.+ drop in a matter of minutes....from that point on I stayed away from it for the rest of the day....NUGT ended up closing right on that support level....I am working very hard to minimize my number of trades daily and sometimes no trade at all on any given day....depending on what I am seeing as a trade that has a stronger probability of success with low risk.....Once in a while i will do a trade such as this one in NUGT....I think perhaps it was a trade done out of boredom....not a good habit to practice.....I need to work on how I establish my risk and position size.


Execution detail:

Date/time Symbol Side Price Position
2016-05-27 11:15:00 NUGT buy $70.840 long
2016-05-27 11:20:00 NUGT sell $72.030 long
2016-05-27 11:25:00 NUGT sell $72.980 long
2016-05-27 11:40:00 NUGT sell $74.150 long
2016-05-27 12:30:00 NUGT sell $74.310 0


Comments

2016-05-28 12:45:18
 

I think "Support Bounce" is a valid setup. And you traded it well. Except, you're very fortunate that the 20 cents stop held. If you are playing a support bounce then the stop has to be below support. THEN you size in based on the amount of risk you intend. So, in this case, you could have made the stop below 70 (LOD) with 50 shares and risked 50 bucks. You wouldn't have made as much, but you'll win a LOT more if your stop losses are when your setup becomes invalid.

2016-05-28 15:09:15
 

LPeriman,
Thank you for that bit of advice.......every day I learn a bit more......I will remember that.....my weakness is that I am too fixated on my P&L.....Thank you for you input on my trade.......I suspect your point about winning more means I will get stopped out less.
Thanks again .....Joe H.

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