Shared by
thearmotrader
-Took a small short in the AM, let some spreadiness in the stock trick me, covered for small loss.
-Took another SS on retrace + slowing down, took the scalp under 19 when it couldnt hold below 18.90, and had slowed down, nobody was hitting the bids.
-Took one more SS on the clean hold below 19. Took scalp when I saw significant buying again in the high 18s - tape slowed.
Overall: Shouldve caught the opening drive play w/ a little more size. Selling was evident from right on the open. Just need to trust my skills a little better.
Decent scalp trades in the AM, couldnt have traded them much better (maybe w/ more size? on initial entries?)
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2012-09-26 09:30:58 | JBL | sell | $19.790 | short |
| 2012-09-26 09:31:00 | JBL | buy | $19.850 | 0 |
| 2012-09-26 09:43:08 | JBL | sell | $19.340 | short |
| 2012-09-26 09:48:25 | JBL | buy | $18.940 | short |
| 2012-09-26 09:48:25 | JBL | buy | $18.940 | 0 |
| 2012-09-26 10:30:39 | JBL | sell | $18.980 | short |
| 2012-09-26 10:42:07 | JBL | buy | $18.820 | 0 |
Comments
DoubleDtrader
I really liked how you were patient enough to wait for another entry on a retrace and not chasing this thing. 2 thumbs up for patience
thearmotrader
Thanks @DoubleDtrader - Couldve traded this better though as always.
@ckz8780 - I did have premkt open. I shouldve def gave this a little more room. Abv 20 might be too much for me as it distorts the R/R ratio, but def shouldve not rushed covering it on the smallest uptick.
Thnx for the chart as well, good view.
ckz8780
Cool dude, I understand! I actually have that same problem a lot (the required stop distorting the r/r ratio). What I found is that most of the time it is better to be patient and wait for those trades to develop more because realistically, the market doesn't care about your r/r ratio. The market cares about support and resistance, and in this case resistance was above 20 so that's where the stop needed to be. In that case, you can try to dynamically adjust your entry until it fits with the stop the market has given you, rather than adjust your stop to correct your r/r ratio. You can adjust your position size for lower r/r trades and trade them smaller but the key is to remember that the most important thing is adjusting your ENTRY based on where the stop needs to be. I found that doing things this way keeps me out of high risk trades and allows me to really hammer the low risk ones.
then again I also traded JBL for a loss on this same day, so what do I know? Haha nice trades man!
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Hey dude. If you're gonna hit a stock immediately at the open, try turning on premarket charting if you can. It will give you a better idea of where your stop/target should be. In this case you can see you had a clear stop above $20.00 (plus $20 is a round number and tends to act as psychological resistance).
Check it out: http://twitpic.com/ayxdpo/full