Shared by
Buffalomutt22
Insane action in the markets. I bought for the break of 5 on huge momentum and I held through the 15 minute MARKET WIDE halt. The stock market reopens and this stock drops very hard so I saw this as an opportunity to average down since each candle had 1 MILLION volume, crazy stuff. Sold on the huge bounce as expected and made my biggest profit of my career!
Took another trade just to make a small profit with the same bounce strategy and gave a nice 17 cent profit.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-03-09 09:33:11 | SPEX | buy | $5.150 | long |
| 2020-03-09 09:33:50 | SPEX | sell | $5.390 | long |
| 2020-03-09 09:49:52 | SPEX | buy | $4.200 | long |
| 2020-03-09 09:50:20 | SPEX | buy | $3.760 | long |
| 2020-03-09 09:50:44 | SPEX | buy | $3.570 | long |
| 2020-03-09 09:51:42 | SPEX | sell | $4.260 | long |
| 2020-03-09 09:51:46 | SPEX | sell | $4.430 | long |
| 2020-03-09 09:51:53 | SPEX | sell | $4.560 | 0 |
| 2020-03-09 10:00:41 | SPEX | buy | $3.640 | long |
| 2020-03-09 10:00:53 | SPEX | buy | $3.600 | long |
| 2020-03-09 10:02:24 | SPEX | sell | $3.680 | long |
| 2020-03-09 10:02:33 | SPEX | sell | $3.700 | 0 |
Comments
Buffalomutt22
My advice would be to practice averaging down on these types of moves in a simulator because it does not always work. This time it did but there are other factors that I look at when deciding to average down and not sell. For example, an almost 2 dollar drop is not sustainable for this priced stock, it was also a flash crash and also people were doing the same thing as I was.
Another reason my trade worked was because I had a lot of money to size down with since I took a beginning size on my first trade and then scaled out half before the 15 minute market halt. I was able to buy 3000 more shares and was at an average of 4.17 which resulted with an amazing trade.
jalane81
Yeah. I typically don’t average down and dig a bigger hole. Usually I stop out, but like you I knew this was a strong moving stock today and there was just some abnormal selling due to overall market halt.
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Ha. I did the same exact thing, but entered my last position at $5.42 for the half dollar push, and it looked like it was going to halt, so I sat back and waited, then the entire market halted. Then I noticed SPEX didn't halt but rather dropped hard back down to low 5's. after market wide halt, it was down in the low 4's and high 3's, and my heart was racing, so I bought more shares.and ultimately made money on the trade. then I proceeded to close my laptop and go to work. lol.