Shared by
ToddyTheTrader
Another beast short setup, after that parabolic move all newsletters /long chasers thought this was the next SPI then reality hit
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-09-24 09:34:23 | POLA | sell | $3.610 | short |
| 2020-09-24 09:34:32 | POLA | sell | $3.650 | short |
| 2020-09-24 09:35:04 | POLA | sell | $3.750 | short |
| 2020-09-24 09:35:24 | POLA | buy | $4.070 | short |
| 2020-09-24 09:35:25 | POLA | buy | $4.180 | short |
| 2020-09-24 09:35:26 | POLA | buy | $4.288 | 0 |
| 2020-09-24 09:41:07 | POLA | sell | $4.620 | short |
| 2020-09-24 09:41:40 | POLA | sell | $5.060 | short |
| 2020-09-24 09:42:08 | POLA | sell | $5.800 | short |
| 2020-09-24 09:43:03 | POLA | sell | $6.390 | short |
| 2020-09-24 09:44:01 | POLA | sell | $5.320 | short |
| 2020-09-24 09:44:51 | POLA | sell | $5.410 | short |
| 2020-09-24 09:45:05 | POLA | sell | $5.613 | short |
| 2020-09-24 09:45:49 | POLA | sell | $5.660 | short |
| 2020-09-24 09:47:10 | POLA | sell | $5.326 | short |
| 2020-09-24 09:58:57 | POLA | buy | $5.040 | short |
| 2020-09-24 09:59:18 | POLA | buy | $4.485 | short |
| 2020-09-24 10:01:05 | POLA | sell | $4.880 | short |
| 2020-09-24 10:04:32 | POLA | buy | $4.410 | short |
| 2020-09-24 10:07:42 | POLA | sell | $4.798 | short |
| 2020-09-24 10:16:45 | POLA | sell | $4.750 | short |
| 2020-09-24 10:29:33 | POLA | buy | $4.750 | short |
| 2020-09-24 10:30:13 | POLA | buy | $4.505 | short |
| 2020-09-24 10:31:48 | POLA | buy | $4.488 | short |
| 2020-09-24 10:59:08 | POLA | buy | $4.290 | short |
| 2020-09-24 11:48:54 | POLA | buy | $3.830 | short |
| 2020-09-24 12:40:02 | POLA | buy | $3.330 | short |
| 2020-09-24 12:50:00 | POLA | buy | $3.380 | 0 |
Comments
ToddyTheTrader
Thanks for the feedback, for me this was an A++ short op I needed to be 100% short bias and convicted asf. It was just a sympathy play running bc of SPI. SPI was tanking when this made that crazy parabolic move, lot of emotion and fomo. My first trade was only small dabbles then I cut over HOD at 4.15, I agree that first entry wasn't great at 4.62 but it was only a dabble starter again. That first add at 4.62 was only 10% of my fullsize, as a short seller you need to dabble get a feel for the stock then scale in when its working. You need to give things room to work and think big picture! Thank you again but price action was great, parabolic move = edge. Look at SUNW sympathy play, same exact pattern just the parabolic wasn't as clean and that faded all day. (I also shorted that nd faded it past LOD) appreciate your feedback, agree shorts can get screwed in this market if we are not careful, SPI day 1 move probably blew up a good few
Saisxyo
Yes, shorts were screw on SPI day one if not discipline enough to cut losses at the risk level. Good point on the dabble, though. A GOOD point about going small then sizing up but, for sure, there got to be a risk level. Are you saying that if the stock hit 7 then you would have cut your losses since the stock momentum to the upside would have been pick up by many who chased due to FOMO and many Shorts squeezing due to fear of SPI day 1? Even if it was a dabble, there got to be a certain point where you cut. I do agree with you when you say that this was an A++ set up due to these sympathy plays spikers without news crashing though. Wouldn't it have been better to have waited for a topping action before actually shorting it? I understand that there will be times when it look shortable, but there would be no shares to borrow too. It is understandable for you to take the risk on the upside since these stocks that move parabolic will come crashing down hard when the momentum dies. I just need to understand your think in regard to the risk:reward aspect because even if you enter with 10% of your size @ 4.60s and averaging to the 5.50s+ area with all your shares, your risk:reward would've been 1:1 at best if you decide to cut your losses around 7.00s and taking your profits in the 3.00s. Would your reason in taking profits in the 3.00s be due to just wanting to take your profits since you have made a good and decent gains? Why not hold for a 1:2 or 1:3 R:R ratios and risking the lower highs? One thing for sure is that the final sell at 3.30 was spot on with catching the bottom of the descend. Overall, I do agree with you that these stocks will crash hard when they made these parabolic moves without news.
After the parabolic HOD was set my risk was 6.50's but then lowered it down to 5.50's when the trade started to work. LOD was always my price target for this trade, when it did brake LOD it wasn't staying heavy on the tape (selling pressure) so that's why I decided to cover.
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Don't be too short bias now. You almost lost 50-100% on the upside on your position. Yes, it will comes down but think of a scenario where your broker force a buy-in for you at the top. Not good R:R with your entry at 4.62. Got to hand it to you for catching the top though but shorts are getting screw if not judging the price action correctly