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markmandy54_BOWS
Daily flag B/O. Intra flag, Long on start of B/O with stop under rising MA's and under recent 5min candle low. S was -.30, T+1, +1.50. Got shaken out. So frustrated, feeling defeated. Started to bounce, thought about re-entry long on the setup presenting itself again but too emotional so walked away! This loss hurt!!!!!
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-07-30 09:46:47 | GMCR | buy | $75.040 | long |
| 2013-07-30 09:50:12 | GMCR | sell | $74.770 | 0 |
Comments
markmandy54_BOWS
I bought there as i've been chasing on the actual B/O lately and getting stopped on roll overs. Therefore right when it popped above my trendline on the 5 min chart i got long with a stop under rising MA and previous higher lows 5 min candle. It seems when i chase (the actual B/O) it fails and i get stopped, when i get in right when it appears to pop with what at the time seems to be a great R:R and a clear stop, it hits me before the big move. This trade stung.
kunal00
mmm not a good entry..not setup intraday..but tthe setup u sold at the bounce spot where the setuup was much better... http://screencast.com/t/oPlglhMTM8S previous low of old candle so thats a buy or bounce spot..cant sell there
Kunal, this helps so much. This tells me my thinking is still a little off as i thought my entry was great but your screen shot you included showed 75.20 was the actual B/O AND my stop was too tight. Man it looks so simple seeing it after you point everything out. Thank you.
Gena_BOWS
First of all, the daily just doesn't look right to me. A bit choppy looking. I don't see a clear set up on the daily, seemed to be bouncing around the 50ma but not bouncing off of it. BUT the daily was interesting and did have a good set up - just needed to wait, more time to congeal. Also, look closely at the VWAP as support (or resistance), it can be powerful I have noticed. In this case it was support.
AnthonyC_BoWS
Hey Mark, something clicked with me today when I was at work and forced to just passively watch the market. I believe it was Nape that had made a comment about a stop I had used on a stock last week. Today I saw it play out and it made sense. I see it on this trade, so I think this will help us both:
While watching the market today, I made about a dozen mental trades and checked every so often to see how they were faring. One of the things that worked incredibly well, that I think we are both struggling at, is matching the stop buffer to the stock's personality. We have both recently seen a few of our trades get stopped out only to rip higher. I believe, and from what I saw today seemed to confirm this, but our very conservative stop placement approach is hurting us more than we know. We are miscalculating the space we need to let some of these momentum stocks operate.
What is also adding to this, if not being the bigger issue, is that we are rookies. Most of our entries are still sloppy. We need to factor this into the buffer when calculating a stop price. When we think something is about a 3:1 reward/risk ratio, perhaps we should be thinking, "hmm...maybe it's only going to be about a 2:1 if I factor in that my entry may be a bit sloppy." In turn, it's possible our 2:1s we'll see as only a 1:1 including headroom for a less than perfect entry. In this case, maybe we'll pass on it and look for a better setup.
To balance out our max amount of $ risk, we loosen up the stop, but decrease the amount of shares we buy. This will give our plays a little more room for error while we are honing in our entries. As we get better we can start to make tighter stops to maximize risk/reward ratios.
Hope this helps. Today was full of those "aha" moments. Feeling great about this whole trading thing.
It was actually Clark Du that pointed out my over conservative stop. Gotta give credit, where credit is due.
I agree with your statement completely and you bring up some great points. Where i struggle is the difference between a tighter stop for a lower risk trade, and a wider stop for the better setup as when i set loose stops, i tend to get hit for max pain when it rolls, and when too tight, i get stopped and it rips. It's like the market knows how to cause maximum frustration and prove you wrong either way.
kunal00
if ur stop is loose u go smaller shares that way ur risk is still the same!
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Why did you buy right there, and not wait until it broke out intraday to buy? you had a flat top breakout on intraday chart... once it broke that it rip hard.