Shared by
camilogomez38
BBBY reported earnings not as expected so the stock was opening down. On the premarket the stock traded on the 74.50-75.50 range. My initial idea was to short at 75.50 with a SL of .30 cents. However, as I saw the stock quickly sold off at the open I tried shorting close to 74.50 which worked as resistance for 3 (1 minute candles).
Review
Now that I see the chart. I realized my entry was incorrect (Again I am trying to predict instead of act), I should have waited a bit more when price action (plus smas) tell me that I could short. The real short was at 75.50 I originally planned as it was rejected for a quick .50 cents move back to the 75 area. I am making the entry at 11:41 am a nice point to cover as the stock finally went above the 8 & 21 SMA.
I did cover before going negative to get out flat.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2015-04-09 09:58:03 | BBBY | sell | $74.430 | short |
| 2015-04-09 10:01:57 | BBBY | buy | $74.440 | 0 |
Comments
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hey dude, I was on it today, too and messed up as well. However, I beg to differ with your review. Your entry was correct. You shorted into a previous breakdown level, period. As far as your "real short" goes, it would never have gotten up to 75.50$. It was just a broker defending the stock with an upgrade intraday and there was no way to anticipate that.
So the mistake wasn't your first entry, but the fact that you did not reenter, as soon as the 74.50 cracked again, because this was THE level. Stop above 74.75, target LOD for a 4:1 reward/risk. I missed it too^^