Shared by
EliBrown
I entered in this trade with the anticipation of a red to green move in the morning. This is a not one of my set-ups and thus a trade that should have never been taken. I chased the stock up getting filled at 4.12. Soon after it dipped below the MAs and VWAP, this is where I should have immediately sold to limit my loss as I had to many shares to begin with. Instead, I made the amateur mistake of hoping the trade would bounce, where I could break even at my buy price. Mental stops will no longer be used.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2015-02-04 09:51:10 | NES | buy | $4.120 | long |
| 2015-02-04 10:42:53 | NES | sell | $3.780 | 0 |
Comments
EliBrown
Thanks Mari, I appreciate the clarification. It seems I need to review the characteristics of some of the set-ups.
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Red-to-green is when the stock opens lower than the previous day's close and then it goes higher than previous day's close. Previous day's close is what you're looking at. This stock opened higher than previous day's close and therefore it's not a red-to-green setup. The stock gapped up compared to the previous day and then faded right after. It's a short setup, because stocks like this tend to drop all day after the gap and fade. Szaman taught me this and it's one of my favourite setups. I shorted this stock where you bought it and I made a good profit.