Entry Point: $3.06
Stop Loss: $2.91
Profit Target: $3.15 (VWAP), $3.20 (Next resistance), $3.40 (Next resistance)
Plan was to sell in 1/3rd increments if it went my way.
Reason for Buying: Support level (whole dollar)
Trade Summary: I was watching this one pre market and it seemed to be fairly strong, so when it dropped off at the open, I bought long looking for a bounce off of the $3 mark. It pretty much immediately dropped past $3 and hovered in the 2.90 range for a while before dropping off further for the next hour or so. Got stopped out.
What did I do well? Truthfully the only thing I did really well on this one was set a stop loss... lol
What could I have done better? Entry was not good on this trade. In retrospect, this would have been a bad trade even if it went up to $3.20 because I was risking $0.15 for a $0.14 gain. If I had a better entry at $3 or below I could have secured a much better risk/reward ratio. I think in the moment I expected it to go back up very quickly, which is why I sloppily entered. The lesson here is to not enter a trade no matter what unless you can get a good entry. Otherwise the risk/reward will be undesirable.
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