FB

3/26/18

Stock has been in play recently, ended up selling off 10% for the day, and rallied to make new highs.

10:44- Long 100 shares at $151.50. Saw a lot of stopping volume and RSI strength, and I believed it was the beginning of a reversal since FB sold off. Placed my stop slightly beneath the low.

10:44:44- Manually killed it at $151.24, second guessed, "looked weak"...

10:50:55- Long 100 at $152.12, stop at $150.57.

10:53- Trimmed 50 shares at $152.97, seeing that the $153 figure was approaching. Stop trailed to $150.20, securing profit.

10:56- Sold remaining at $152.71 manually, it looked like the beginning of the retracement.
Might consider switching gears and going short next time, since it will be joining the main trend line.

11:08- Shorted 300 shares once FB broke $150, at $149.96, stop at $151.97. Chased this- it was a retail mentality. Stock started to work against me immediately very quickly but I forced myself to trust my stop loss, and believed that the pattern would continue to align.

11:20- Finally saw an opportunity to trim 200 shares at $149.52. Watched FB very carefully to see the strength of the potential direction it was heading in.

11:21- Saw huge green volume and exited ASAP, covering remaining 100 shares at $149.71.

1) $150 was the target price, and although it did break $150 it was not a significant amount. Should get in next time if it demonstrates a rip to resistance, that is more favorable.
2) Put on too much risk given parameters.
3) A probability for a stock to drop this significantly without some kind of crazy pullback is low.
4) Reversals are usually not V-bottoms, they are a grind up but should still look for topping tail on volume.
5) Stopping volume + RSI is very helpful in playing defense