Shared by
JasonC_BOWS
P&L: -$175
CPXX has been a great play for me lately. My goal this morning was to watch it for a r/g move at the open. Once I saw it cross over to green I made my entry. Failed to break $12.70 and rolled over right back to red. Once it broke under all its MA's I sold off for a loss.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-03-24 09:54:59 | CPXX | buy | $12.470 | long |
| 2016-03-24 10:19:07 | CPXX | sell | $12.120 | 0 |
Comments
JasonC_BOWS
JensW
Not sure where your stop was / would have been on this trade???
you lost 35 ... so for a 2:1 reward to risk your target would have to be (+70 cents) ca. 13.20.
what is your strategy? are you a momo trader? are you a pull-back trader? are you a reversal trader?
Well, my stop should have been at the $12.40 mark when it crossed back to red. I find myself giving it some playing room at times which is what gets me into trouble. I need to start putting hard stops instead of eyeing them. My strategy is def more of a momo trader but I will trade different setups if I see them. This is my first red/green play and since CPXX has been moving nicely I thought it was a go. I failed to notice the over extension which should have been a clear sign.
if your stop was 12.40, i.e. 7 cents and you sold for a 35 cents loss, you lost 5 times more than expected.
rarely will you have a trade, where you win 5 times more than expected.
for that reason ... these trades (in case they occur once in a while) make it practically impossible for you to be profitable because they hurt your reward to risk. ratio.
if you are serious about trading, you need to tag your trades systematically, focus on 1 or 2 set-ups only, and start to consistently document your trades. your current documentation does not add much value to you in the long term.
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My guess is Kunal would say you can't enter there on 3 green candles (The reason is because I've made similar trades and that's what he's told me!).
From the low of day there, to where you entered is actually a 6%+ move. Yeah, it's red-to-green, but it's got to be tighter (less extended going in).