Shared by
johnc_BOWS
Shares traded: 4000
Closed P&L: $495.44
Assumption:
GMCR may spike up on news that it will join NDX. Important to watch early morning.
Plan:
Saw red-to-green play. Buy as it clears MAs and moves above opening price. Set stop just below MAs and opening price at $7.28.
Outcome:
(First entry)
Great red-to-green! Set first target at 40 cents above buy price (to maintaing 2-to-1 R:R). Sold 1/2 at 75.88. Next target was 20dma. Unloaded when it turned turned to the downside.
(Second entry)
Not sure what I was thinking here... really felt like it was human error. I'm still making mistake on Prodigio of buying the wrong stock accidentally. Didn't see a setup here and the position I took (1000 shares) was WAAAAAYYY to big considering the nearest possible support is 20 cents away (i.e. 9ema)
(Third entry)
Bought on flat top breakout. It was also flagging, adding additional probability. Set a stop under the bottom of the previous candle. I sold 1/2 at 76.75 and unloaded the rest as it seemed to turn to the downside.
Lessons and Mistakes:
Learn more about setting proper stops. In retrospect, I don't know if I was right to set my stop below the previous candle. My thinking was that if the stock broke the flag, it wasn't going to breakout. Although this play worked out well this time, I wonder what would've happened if I got stopped out and then the stock bounced off 9ema and then broke out.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-08-16 09:45:14 | GMCR | buy | $75.481 | long |
| 2013-08-16 09:47:46 | GMCR | sell | $75.880 | long |
| 2013-08-16 09:47:46 | GMCR | sell | $75.880 | long |
| 2013-08-16 09:47:46 | GMCR | sell | $75.890 | long |
| 2013-08-16 09:49:54 | GMCR | sell | $76.376 | long |
| 2013-08-16 09:49:54 | GMCR | sell | $76.380 | long |
| 2013-08-16 09:52:31 | GMCR | sell | $76.310 | long |
| 2013-08-16 09:52:32 | GMCR | sell | $76.280 | 0 |
| 2013-08-16 09:58:52 | GMCR | buy | $75.878 | long |
| 2013-08-16 09:58:53 | GMCR | buy | $75.880 | long |
| 2013-08-16 10:01:53 | GMCR | buy | $75.800 | long |
| 2013-08-16 10:01:56 | GMCR | buy | $75.830 | long |
| 2013-08-16 10:01:56 | GMCR | buy | $75.840 | long |
| 2013-08-16 10:03:13 | GMCR | sell | $76.090 | long |
| 2013-08-16 10:03:13 | GMCR | sell | $76.100 | long |
| 2013-08-16 10:03:13 | GMCR | sell | $76.090 | long |
| 2013-08-16 10:03:13 | GMCR | sell | $76.100 | long |
| 2013-08-16 10:03:13 | GMCR | sell | $76.090 | long |
| 2013-08-16 10:09:33 | GMCR | sell | $75.670 | long |
| 2013-08-16 10:09:43 | GMCR | sell | $75.740 | long |
| 2013-08-16 10:09:44 | GMCR | sell | $75.730 | long |
| 2013-08-16 10:09:44 | GMCR | sell | $75.740 | long |
| 2013-08-16 10:09:47 | GMCR | sell | $75.750 | 0 |
| 2013-08-16 10:58:03 | GMCR | buy | $76.460 | long |
| 2013-08-16 10:58:03 | GMCR | buy | $76.460 | long |
| 2013-08-16 10:58:03 | GMCR | buy | $76.460 | long |
| 2013-08-16 10:58:03 | GMCR | buy | $76.460 | long |
| 2013-08-16 10:58:03 | GMCR | buy | $76.460 | long |
| 2013-08-16 11:18:20 | GMCR | sell | $76.750 | long |
| 2013-08-16 11:18:20 | GMCR | sell | $76.750 | long |
| 2013-08-16 11:23:14 | GMCR | sell | $76.600 | long |
| 2013-08-16 11:23:14 | GMCR | sell | $76.620 | long |
| 2013-08-16 11:23:14 | GMCR | sell | $76.590 | 0 |
Comments
johnc_BOWS
Mark, you're right that I didn't enter this properly as red-to-green. In retrospect, since I misinterpreted the R2G, it could have reversed by the time I exited. I thought that it was an R2G because there is a large red candle on pre-market chart right before it opened. I entered when the stock cleared this large red candle, which is also when GMCR cleared the MAs.
I entered it based on news that GMCR was being re-added into the NDX, giving it greater exposure. I decided that it would likely run-up. In hindsight, I should have played this as an ORB,
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1st entry seemed like chasing and due to the gap up it doesn't look like there was a R2G and no clear stop so that seemed like a gamble. Gave nice clear flag around 75.75, that was the entry.