Shared by
bruceweng
1st entry pullback long. 2nd entry flagged and stopped out.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-04-20 09:56:43 | VMW | buy | $58.360 | long |
| 2016-04-20 09:57:27 | VMW | buy | $58.200 | long |
| 2016-04-20 10:11:42 | VMW | sell | $58.700 | 0 |
| 2016-04-20 10:30:58 | VMW | buy | $58.050 | long |
| 2016-04-20 10:39:39 | VMW | buy | $58.000 | long |
| 2016-04-20 10:46:18 | VMW | sell | $57.800 | 0 |
Comments
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I actually thought your 2nd entry was better than your 1st.
Ok.. a little more detail cause you asked for it. ;)
Daily chart: Earnings Gap up coming out of a base with more room to price resistance. Definitely long biased
1st trade:
A stock that gaps and goes for > 15% is likely to need more time to consolidate than 3 candles. Especially with the fairly hard pullback where you entered. I'm not saying you can't win (you did this time) sometimes. But, it's so hard to manage risk. Let these things form a base so you can define risk and a good entry. I did, however, think your exit spot was there at resistance was a good place. Good job on that.
2nd trade:
Separate from what happened after this, this seems to be a MUCH better entry than the 1st. There are no guarantees in trading, so at the time you entered this could have been a double top short. But you aren't thinking that because the daily chart says long bias. So, you get in at the previous low anticipating a flag. At the time you entered, this is what you saw --> http://screencast.com/t/aH8j3Ejtk and I thought that was a great place to start a position. Really well done. Then you got stopped out, literally to the penny, on support. Even the wick below your stop was only 8 cents. Just one advantage of getting such a GREAT entry is that you can let the stock "breath" a bit. If you can't give a 58 dollar stock a dime, then you are in with too large a position. And, even if you would have wicked out, so many chances to reenter. ended up to be a really nice daylong consolidation with many spots to add without increasing risk. See the 2 patterns you could you have traded around --> http://screencast.com/t/S8KqKsvojQ
Don't feel bad. Hindsight is always easier. Your job in trading isn't to be "right", but to be thinking right. Daily bias, intraday opportunities that allows you to keep risk small.