Shared by
kentf_BOWS
It looked like this stock had a nice bounce and moved back above it's MAs. It reversed and stopped me out.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-05-16 15:37:01 | WNR | buy | $39.690 | long |
| 2014-05-16 15:44:32 | WNR | sell | $39.590 | 0 |
Comments
kentf_BOWS
Hey great feedback! Thanks that's a really good point. I definitely jumped in a lot of stocks today without giving it a proper evaluation. I'll need to work to slowing things down and waiting for the proper entry.
kunal00
no setup on this.. this stock had been gridning higher and highert and higher since the open.. buying it with 10 minutes left after it had been running up alld ay is not logical if u want it get it earlier!
Thanks Kunal good point. I think i was just getting desperate at this time of the day after getting stopped out of so many trades that day. I definitely regret this one.
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Hey Kent, I used to have this happen to me all the time, but I've been able to limit it by just slowing myself down, and taking a few extra minutes before I decide to get into a stock. Sometimes that means I miss a good move (I missed a nice move on $ARTX today by literally less than 10 seconds). But more often than not, it gives me time to evaluate it more, and keeps me out of stocks that end up reversing on me.
The other thing I learned (or rather, am learning) is choosing a better entry point. My immediate reaction is to just jump in, but after watching Kunal and some others trade, I saw that they wait for the stock to pull back a little before they enter. This does 3 nice things:
1. Slows me down. Yeah, I really need help here.
2. Reduces the risk. In other words, if you'd waited for the bounce to pull back a little, you might have entered at around 39.62 instead of 39.69 - so even if the trade didn't work out, you would have only lost 3 cents a share instead of 10.
3. Increases the profit. Again, if you'd entered and it had gone your way, you would have gotten an extra 7 cents a share profit.
The combo of reducing the risk and increasing the profit at the same time is really powerful; it's only a few cents difference, but you get double benefit from those few cents, and if you get it in all your trades, it adds up.