AEZS Trade on Jan 17, 2018 10:09 from konradengen: Tradervue User Stock Trades.

Was waiting for a bit of confirmation of a hold over vwap. Took position even though it had both an ATM and warrants at 3.10. Thesis was that it could trap shorts and squeeze up to 3.10-ish. Was to slow to get a fill at 2.78, as the second dip was holding. Got taken out as it cracked right back down. Got out as risk broke and had to chase down a bit.

Not completely sure whether I should count this trade as a cost of doing business or an error trade. There were certainly some red flags (ATM, warrants & quite heavy volume exhaustion at 9.45), but often a stock that has ATM or warrants just continue to go, if the price action is right. In this case I considered the price action to be right. The error I made was to put an order in, in case it scooped up some shares at a lower price. Better to wait for another fade down, instead of a fast crack. At least when it has retested the vwap twice, and should start spiking.

This is a pattern that I feel resonates with me, but I have little real-time experience of playing it. Important to expect some more losses early on…

Lesson: Would have been ok to try the trade with a decent entry around 2.78 after the second vwap retest, but avoid putting in an order “in case you can get in on a lower price”.