Shared by
pstark89
I took this trade buying it at the 9 ema on the 5 minute anticipating an end of day rally. Before I blinked it was down 50 cents and then even more.
Not sure what I could have seen to anticipate a decline like that. If anyone has thoughts, I would appreciate it.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-11-07 15:10:50 | SHLD | buy | $44.950 | long |
| 2014-11-07 15:16:09 | SHLD | sell | $44.260 | 0 |
Comments
pstark89
Completely understood in theory. I definitely wasn't planning on a 75 cent stop but the way this moved, it was down 50 cents before I could even see that I bought it. Just plunged. I suppose I could put a stop loss order in but even then, not sure I would have been able to avoid a 50 plus cent loss in this particular case.
tmarinshaw_BOWS
That happened with me during a GPRO trade during an ORB. I lost 9k in a few minutes and couldn't believe it.
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sometimes it just goes the wrong way. What you did wrong was not put a super tight stop loss. You bought coming off of a day long consolidation pattern so my stop loss would have been no more then .10 to .15 cents from where I bought. That way if I'm wrong I'm out quick before any real damage. a .70 cent stop loss is huge, especially given it's coming off of a consolidation. Even if the stock made a run the most you would have gotten out of it would have been around .75 cents to 1.00, which means if you're going for a 3 to 1 ratio your stop should have been no bigger then .25 to .33 cents...