Shared by
thearmotrader
Made this mistake twice earlier this week and learned from it. Try to recognize early when a stock is going to chop around so YOU don't get chopped up.
Went long 105.50 after it made a nice opening drive. Was risk 11-12 cents for a $1 move (>2 ATR). There was a nice bull flag on the 1min. It dropped, I got wicked, and it came back to .50.
I went long again but it wasn't showing me a reason to hold it as it kept trading above/below that .50 level (aka couldnt hold the bid). So I just cut my losses and decided to reassess/not touch it again.
As you can see, it just chopped around for the rest of the day. Yeah it did have a failure of 106 and dropped $1, but IMO, thats not a great r/r trade as it is counter-trend.
Plus, CVX has a history of trading nasty (Thanks to TV I can view my past trades on this and know that!)
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2012-01-12 09:36:23 | CVX | buy | $105.510 | long |
| 2012-01-12 09:37:10 | CVX | sell | $105.380 | 0 |
| 2012-01-12 09:37:58 | CVX | buy | $105.520 | long |
| 2012-01-12 09:38:13 | CVX | sell | $105.470 | 0 |
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