Trade idea: Took a 1/3 BP position at $9.1 on the first 1min candle to make a new high at the break of an ABCD/Wedge pivot level. Took an additional 1/4 BP add at $9.11 to increase my size as the trade went in my favor.
- Contraindications: Low volume (336,691) and significant spread
Risk Reward:
- Risk: SL at ~8.8 but more specifically a SL when a 1min candle makes a fresh low
- Reward: Initial target at $9.25 but wanting to hold and scale out as it picks up momo.
Trade Sizing: I implemented a ladder in regards to how I scaled into the trade. I added relatively early as it made a push and I bought a micropullback which came just within one cent of my initial entry. I took an appropriate size in confluence to my BP. I scaled into ~.5 of total BP.
Management: I took the first sell of 1/2 my position at $9.2 as it was ranging and I was initially red in my position - therefore I wanted to lock in profits. I let the price break $9.25 before I sold 1/4 of my outstanding position at 9.35. My next target was $9.6 but as it broke my order on the ask did not get filled. Instead the break of $9.5 was a false breakout and formed a topping tail doji. Therefore the sellers took control here and I was forced to sell the entirety of my position as it made fresh lows - Last sell was at $9.2
Final exit thoughts and what I learned:
- What I did well: I was patient in letting the stock prove itself to be weak before cutting my position. It was a bit choppy and indecisive after my entry but it never made a technical fresh low. Therefore I held strong. This was probably a function of its low volume and significant spread. I will not trade tickers like this with such size for that reason. Moreover, I did well to exit into profit during my final sell as it made a technical top and made fresh lows.
- What I can improve: my first sell at $9.2 was a bit impulsive as it only rejected there once. Upon the second test, it broke through and surged to $9.38. Therefore a better target would have been at least $9.25 and possibly only 1/4 at that level. I should have let the majority run for the bulk of the move. I also believe this stock was not the best choice given the volume and spread context. It was technically sound but was not backed with trading attention.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-02-26 09:37:04 | RUBY | buy | $9.100 | long |
2021-02-26 09:37:37 | RUBY | buy | $9.110 | long |
2021-02-26 09:39:46 | RUBY | sell | $9.200 | long |
2021-02-26 09:40:02 | RUBY | sell | $9.350 | long |
2021-02-26 09:41:16 | RUBY | sell | $9.200 | 0 |
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