Shared by
Dibbeee_BOWS
First buy was a real product of FOMO, saw that it had a premarket Gap-up and low float.
I was soo sure that it would spike up in the next candle and i hadn't set a stop, which i should have done with a such HIGH risk trade if i was thinking about it!
Next time, i was soo sure again that i would go... And of course no stop, until i realized what i was doing, and set a stop way too low.
The third time, i actually had some kind of support in the 9 EMA. I was thinking that it might bounce of it and come back. But it didn't, and i had set my stop i bit to far away.
This was overall what killed my day, and i didn't realize that i had hit my daily max draw-down of $300.
This stock also got me to forget all about the other stocks i had on my watchlist, which was doing almost exactly what i've predicted.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2015-04-29 09:36:27 | GPRO | buy | $53.960 | long |
| 2015-04-29 09:45:40 | GPRO | sell | $53.225 | 0 |
| 2015-04-29 09:50:24 | GPRO | buy | $53.696 | long |
| 2015-04-29 10:09:12 | GPRO | sell | $52.620 | 0 |
| 2015-04-29 10:21:09 | GPRO | buy | $52.510 | long |
| 2015-04-29 10:23:02 | GPRO | sell | $52.175 | 0 |
Comments
mb_willoughby
Too many flips! You gotta be patient and wait on the setup. this is overtrading!
Dibbeee_BOWS
KyleErvin_BOWS - I see exactly what you mean, and i'm grateful for this feedback.
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Dibbeee_BOWS I am essentially seeing the trade this way, flip your buy order to a sell, and your sell orders to covers and this trade would be Perfect. But the main issue I see here are your entries. You literally bought AT resistance. NEVER buy AT resistance, that's literally the opposite of what you want to do. Even if this stock did keep going higher that would still have been a bad entry spot. Try to picture price action like a ping pong ball in that game old arcade game pong. One wall is support, the other is resistance. The price generally is going to bounce between these two areas so you want to be Shorting at resistance and Buying at support, not the otherway around. If you literally can flip your entries you would have it. Does that make any sense? When the price is at resistance (at the top of the short term range) that is a short entry, instead that's where you bought. Where as if you would have just bought on the other end of the range at (at the bottom of the candles) you would have had a long scalp as the price bounced off support back up to the upper range.
So the takeaway I'm trying to get a across is always identify those levels of support and resistance and ONLY buy at support (the bottom of the range) and ONLY short at resistance (at the top of the range). Even if the play your doing is a breakout and the stock goes higher than where you entered you want that entry to be at a dip, not a peak. This is one of the biggest things I'm learning right now so I'm not trying to pick on you here, I just really want to share this lesson with you. Best of luck my friend.