Shared by
James_BOWSsim
Shorted this one hoping to catch a rubberband snapback. Shorted intraday when it was up 6 green bars in a row right under resistance. Got stopped out literally by like 2 pennies since I used such a tight stop. I didn't want to risk much today, but missed out because of that. This stock faded nicely throughout midday and I wasn't there to trade it because I had used up all of my mental capital early.
When it bounced off the 20 EMA a minute later I remounted/ shorted again. This time I began to doubt the validity of the setup, as I was almost stopped out again. So I just sold my shares for a small profit to at least try and cover getting stopped out the first time. Ironically, later the stock pulled back just as predicted. DON'T use such tight stops! We have to risk money to make money.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-01-11 10:09:58 | MEET | sell | $4.120 | short |
| 2016-01-11 10:09:58 | MEET | sell | $4.120 | short |
| 2016-01-11 10:09:58 | MEET | sell | $4.120 | short |
| 2016-01-11 10:09:58 | MEET | sell | $4.120 | short |
| 2016-01-11 10:17:41 | MEET | buy | $4.220 | short |
| 2016-01-11 10:17:41 | MEET | buy | $4.220 | 0 |
| 2016-01-11 10:21:42 | MEET | sell | $4.166 | short |
| 2016-01-11 10:29:08 | MEET | buy | $4.113 | short |
| 2016-01-11 10:29:08 | MEET | buy | $4.114 | short |
| 2016-01-11 10:29:08 | MEET | buy | $4.115 | 0 |
Comments
James_BOWSsim
Thanks Lawrence. I need to get rid of my over cautiousness. It makes me trade with less and less shares as the day goes on. I feel like my winners don't count as much if I risk over $80 on each trade. But perhaps I'm just overtrading and should focus more on finding comfortable/ familiar setups.
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Nice multiple timeframe alignment -- Daily snapback and intraday Pullback to 9ema entry. Agree that your stop was too tight (3 cents above 20ema), but nice re-entry when you were stopped out. 2nd stop should have been over previous high @4.25ish. Don't forget that you aren't risking more money by having proper stop points, just reducing number of shares.