Shared by
igetmoney_03
Least Favorite Trade of the Week
Trade: Was looking to short the stock into weakness. I did not want for UNT to break hod and breakout. 1st-Shorted into weakness waiting to add more. I let the trade work, but I controlled the fact that I did not want for it to get away from me.
2nd-Shorted, and then waited the hod breakout but it never came. Then I added for the VWAP breakdown at the end of the day, but it never came. Got chopped around.
TP: I tried to let the trade work in my favor, but it never did. I wanted to short UNT because it was a weak stock which was running. The stock failed to break $18.00 to the upside. Initially, there was weakness on the L2. It seemed like a lot of weakness, and I thought the stock would continue lower, but out of nowhere there was strength and the stock rallied up. So I got stopped out.
2nd-Again, there was a lot of weakness on the L2. I started out small because the stock was very close to the 25% upper range, so it could still potentially breakout. I gave the stock time to either breakout or breakdown. It did not breakout, so that gave me confidence that I could add if it broke down from the VWAP. So, I shorted right at the VWAP for a breakdown, and the breakdown never occurred. This was the most frustrating trade of the week. i did not break any rules; I just traded poorly. If I had to make the prediction whether the stock will go up or down on Monday, I would choose up. Every dip seemed to be bought up. I was looking for a strong breakdown, but it never came.
Improvement: Become a better L2 reader. Funny thing is that I told myself I would not get mad if I lost money on the trade. I was not following any rues, and I was just finding reasons to short anything so I could make some money.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2017-06-09 12:26:00 | UNT | sell | $17.740 | short |
| 2017-06-09 12:48:00 | UNT | buy | $17.900 | short |
| 2017-06-09 12:48:00 | UNT | buy | $17.850 | 0 |
| 2017-06-09 13:34:00 | UNT | sell | $17.670 | short |
| 2017-06-09 15:07:00 | UNT | sell | $17.520 | short |
| 2017-06-09 15:21:00 | UNT | buy | $17.710 | short |
| 2017-06-09 15:53:00 | UNT | buy | $17.780 | 0 |
Comments
jakerock23
This was not a weak stock on the 15 minute. On the daily chart, yes. On the 1,2,3,5 minute, yes, but ultimately it was still hovering at the 25% mark so it was relatively strong. Hindsight is 20/20 but next time I would avoid trying to get back in this stock after taking a loss; imo it's a mild form of revenge trading
falfred
Jakerock23 said some thing that needs to be corrected. If one million people trying to go long UNT and you are the only one with an open position to short UNT that trade will never work out in your favor. It doesn't matter if you saw a great set up on the 1 min, 5 min, 15 min or daily time frame. The buyers out numbered the sellers. Traders that don't really understand that concept repeat the same thing over and over again.
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From the onset, you never should have entered this trade because you were trying to go short in an area where the buyers out numbered the sellers. Reassess the time frames you use to enter markets it will help in improving the success of your trades. I hope this helps