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James_BOWSsim
This stock was at resistance around $360, and gapping down on the day after a bounce. Longed it once I saw it bumping up into the MA's. Scaled in and out pretty small on this thing to make up for the fact that my stop was a few dollars away under the LOD.
Should have bought the opening dip on this one, would have caught a $10 move by 10am. Was this the right play? How would you have seen/ taken this one? Would have been a nice quick pullback short afterwards.. But I made my $$ for the day, just watching for now until class starts.
Execution detail:
Comments
kunal00
u can take a quick counter trend trade but remember the gap .. when we get gap downs like this the first pop we look for a reversal to short.. sure u got a nice little scalp on it
but 1-2 dollars on something that moves 50 dollars is not a good r/r
taking this this down on the elevator
James_BOWSsim
Thanks Wooteroni, I have been keeping wider stops and it really helps. Trying to be more risk efficient by scaling in little by little at the 'best' price.
Kunal for gap down's in this distribution market are we still looking to short? Sometimes I see stocks gap down lightly and end up green for the day.
I could have phrased that question better lol...
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It's not that this wasn't really the right play. After it pulled back last week and since its trading in a range now its a little tougher to catch any solid moves in it. With the range this trades in you were mostly scalping it and that's all you can really do right now until oil figures out its next major move, giving you a better edge. Keep your size small and keep wide stops so you don't get your face ripped off. This is one of my favorite ones to trade though too :)