CGIX Trade on Aug 24, 2020 10:51 from CapitalMastery: Tradervue User Stock Trades.

Summary

Took an anticipation entry as CGIX was closing in on a 5min cup to the downside, with a 30min bab and failed 20min high (almost). Covered into the 20min20ma as the entry trigger still wasn't quite formed, but CGIX did ultimately give us the entry signal and reach it's 60min20ma after hours. It also gapped down the next morning.

Why Was I in This Trade?

Big Gap that started to break down with a lot of evidence is was going to get back to it's expected target.

Did Right

• Waited for the stock to breakdown and transition into backside before putting on a short trade.
• I used the 20min20ma to help guide my targets which worked out well.
• Shorted the unexpected pop that came in the afternoon as it felt like shenanigans from manipulators and the tape stayed heavy.

Did Wrong

• Started the position into weakness with too many lots. At a minimum, I should have only started with 2/5 of my max size, and then looked to add on next pop. However, given that the entry trigger hadn't triggered yet, I should have waited for a pop into the 5min20ma to start a position; this would have given my better protection/risk reward had the stock reversed on me.
• Should have shorted the 2nd afternoon pop; could have used VWAP as a guide if 30minbabo was too far away.

Improvements

• Only start positions into weakness if my entry signal triggers, and only with 2/5 max size, with a plan to add the rest on the next pop.
• If my entry signal hasn't triggered, only start anticipation positions on pops/pullbacks into the 20ma (so you know it's a full pullback/pop).

Next Trade

Would expect a Low Hanging Fruit trade tomorrow on CGIX; just need to be careful as there was a merger, which is unique (i think).