Shared by
silverholden
Had this on my recent IPO list, and was watching for a break of a slightly sloppy daily flag. Popped in the morning, and began a range. I entered towards the bottom of the range, I am pleased with my patience on the entry here. Took it with pretty small size as I really had no support other than the bottom of the (short) range. Sold into the pop, I was careful to keep my target just short of the whole number to try to increase the odds of a hit. Stopped out the reminder on pullback.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-09-29 11:05:50 | RWLK | buy | $32.100 | long |
| 2014-09-29 11:05:50 | RWLK | buy | $32.100 | long |
| 2014-09-29 11:37:15 | RWLK | sell | $32.900 | long |
| 2014-09-29 12:30:15 | RWLK | sell | $32.100 | 0 |
Comments
silverholden
Yes, I was hoping for a push past 33. It had a pretty strong move r/g (which is where I wanted to be, but wasn't watching), and it looked like it wanted to hold the bottom of that flag over 32. I figured that by getting an entry right near the bottom there, I could stop out around the 9 EMA if it didn't hold 32. It also gave me enough room upward towards 33 to be worth the risk even if it didn't breakout past 33. For the psychology of it I didn't really enter as it was going down in my mind. I looked at the consolidation range on the flag and picked a place near the bottom that I thought would be a nice entry, and stuck a limit order there. If it didn't fill I wouldn't chase, but if it did then I could place a stop at a safe place and see if the range holds. to buy at the top around 32.50 would have put me nearly $1 away form 9 ema, which is too much risk. And the range was almost .50, so too difficult for a stop with the risk I like to trade.
jmos_BOWS
Thanks! Good way of seeing it, through the pattern instead of tick by tick. I will try to remember that.
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Great entry and first sell! Did you just get in hoping it holds? Sometimes, I want to try but it is soooo hard to get in when price is going down. It is very counterintuitive.