Shared by
FrankDumaresq
Stock Selection: 3rd day play off earnings + market stock on market in play day
Setup: Pull in Long to PP / 236
Activator Candle: two 5m doji's on Pivot after quick down-move
Fight for Entry: Goal was to get entry as close to 67.93 as long as ask was weak and bid was strong at that price. Nailed first entry price, but with only 30% size. Internet outage from 10:17-10:19 meant I couldn't start fighting for entry on remainder of position until ~10:19:30 at which point 68.00 was holding with very weak ask, so fought for $68 at that point instead of 67.93. Filled remaining shares of position at 68.01 on reduced position size (500 shares total instead of 700).
Risk Mgmt and Sizing: Risk $100. Initially intended to enter at 67.93 with stop 67.79 (low). This meant 700 shares. I entered 200 shares of that, then internet went out and had to wait until a few min later to fill remaining shares. At that point it looked like best entry I could get for remaining position was $68, so I recalculated size to be 500 shares total off a new stop of 20c (not 15cents). Still good R:R so felt comfortable taking the trade despite slightly worse entry and reduced size.
Exit:
Took off 100 shares as soon as I saw signs of rejection at 68.50 level. Rejection at 68.50 was quick, but pullback from that level was slow, indicating low risk for double top and higher likelihood of bullish consolidation under 68.50. At this point stop was placed for remaining shares at breakeven, but additional size was not removed at 68.50.
Took off another 100 shares at initial signs of rejection at 69.25 level. Then took off another 100 at close of 5m hammer at that level, then took off remaining size when 10m hammer closed at level.
Additional Notes:
Would've been ~7R if I hit entry better, not much I could've done though because internet went out and had to switch to backup, at which point i lost best entry price. Happy with how I handled situation.
Followed my exit strategy, but my strategy itself needs a bit more sophistication to hold a bit longer with some of my size when appropriate. In this instance, SQ eventually surpassed the swing high that i exited at. I'd like to improve at holding longer to catch those fuller moves.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2019-05-06 10:16:20 | SQ | buy | $67.940 | long |
| 2019-05-06 10:19:50 | SQ | buy | $68.010 | long |
| 2019-05-06 10:20:08 | SQ | buy | $68.010 | long |
| 2019-05-06 10:31:45 | SQ | sell | $68.450 | long |
| 2019-05-06 11:43:17 | SQ | sell | $69.190 | long |
| 2019-05-06 11:47:14 | SQ | sell | $69.230 | long |
| 2019-05-06 11:54:08 | SQ | sell | $69.080 | 0 |
Comments
Jholden
nice job using the idea of the Pull In trade and letting it set up for you. I like you kicking some out at the highs in case it failed and came all the way back, but when it tried to come in and could not, and especially when it gets above 68.5 and holds up there, you could consider adding there.
FrankDumaresq
Thanks guys.
@Valencia
That’s funny, definitely agree!
@Jholden
Agreed on kicking out some at the highs. A couple weeks ago I stopped doing that in an effort to hold more of my positions for longer, but last week I decided to go back on that by taking a quarter off at the first overhead level regardless of reaction.
You’re totally right about adding above 68.5. The last couple months i’ve been hesitating to add size to my winning positions, as I’ve wanted to focus more on consistency with the setup first. April was pretty consistent, so going into this week I will experiment with getting more aggressive on the setups that are working!
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This is awesome. We both took the same trade at the same time. You went long, I went short. Goes to show 2 people can be looking at the same thing and see two different pictures. Congrats.!. You win this time!