PAPER TRADE (LOSS)

• Setup: -------------------------------------------------------------------- HOD Break/Earnings Play
• Entry: --------------------------------------------------------------------- $5.94
• Shares: ------------------------------------------------------------------- 1000
• Stop: ---------------------------------------------------------------------- $5.86
• T1: ------------------------------------------------------------------------- $6.12
• T2: ------------------------------------------------------------------------- $6.25
• Reward:Risk Ratio (T1): -------------------------------------------- 2.25:1
• Exit: ----------------------------------------------------------------------- $5.86

• Profit/(Loss) With Commission: -------------------------------- ($93.00)

• Details:
  Earnings play/HOD break, 1000 shares. I originally wanted to enter this trade at $5.83 for a breakout of the daily range, but it gapped above my desired entry point. It put in an initial high then started to test it so I recalculated my r/r using my previous desired entry point ($5.83) as support. It was still ok to enter risk-wise so I entered on the break of the high at $5.94 hoping for a push to the next resistance point on the weekly chart ($6.12). The breakout failed so I stopped out at $5.86. Later this day I attended a webinar with one of our other traders and asked the host how to handle situations where a stock gaps above your desired entry point and her tip was to simply wait for an intraday setup. I did that with this trade but the setup wasn't very strong, which is most likely why it failed. In the future I will be waiting for a stronger intraday setup like a long base/consolidation or a flag. Also, looking back now I see that the weekly spot I was shooting for hadn't been touched since Feb of 2011, so it was probably unlikely that it would get there today.