Shared by
charlesk_BOWS
stop 1.99 dropped fast and got a 1.96 fill.
chased slightly but thought it had more steam as the green candles came in.
broke my $50 max loss rule on this guy and it cost me P/L on the day.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-12-04 14:13:22 | ABIO | buy | $2.110 | long |
| 2013-12-04 14:13:22 | ABIO | buy | $2.110 | long |
| 2013-12-04 14:25:16 | ABIO | sell | $1.960 | long |
| 2013-12-04 14:25:16 | ABIO | sell | $1.960 | 0 |
Comments
chrisconnelly3
thats a tricky one, i would have waited till it broke that second/middle high, looks like it was just a few cents too weak,,,
charlesk_BOWS
so this is something I am struggling with because your two comments are different. Nape says I chased, and Chris says I was too early(should have waited on the break of the second high)
I see four arguments for four different entries:
1) The flat top triple tap breakout, which is what I was going for and thought I had a good entry for this play...
2) Chris says I should have waited a bit more for the breakout confirm.
On the chase side.
3) entry should have been at 2ish as it came back up across the MAs from the second pullback and yet
4) would be that I could have caught at $2.25ish at 2:05 as the flag was breaking to go higher....
which is right?
I see where our comments can confuse you, I should have been more specific in explaining mine, sorry!
Basically, in my opinion, there are two ways you could have traded this. The first way is what I think Nape was suggesting was buying right off support at 2.05ish in anticipation of the triple tap BO on the 5min.. this would have allowed for a much tighter stop or smaller position if you choose you want to limit your risk at that time in the day, while still keeping you in position for a nice gain should it reach HODs, or even better break out past that.
Second way to trade it would have been to wait until you have the advantage of a breakout confirmation, ie. a break over 2.13 at that middle peak, or even safer just buy nHODs. And then just rode that thru the triple tap BO. The danger/trick with this approach from what ive found is you need to have the proper setup coming into that break of confirmed new highs, where you bought there was a .10 spike off 2 candles, (a relatively big jump for the stock), it would have been more solid of an entry at that price level if it had based out right under that level before hand, unstead of jumping .10 to reach it, and then still assume it has the juice to run another .50 or whatever you need it to to make a profit..
If you ask me, with the market how it has been it is safer to take Nape's approach and buy off of support, instead of potentially extended, albeit confirmed breakouts. Hope all this is making sense, please feel free to let me know if you have any other questions!
Thanks Chris that does help me better understand.
One thing though on your second way to trade it is what I thought I was doing... maybe I was just a few cents too early, but again I was trying to anticipate the triple tap and ride it through.
doing that.. maybe I should be setting my stop just below the breakout, instead of below the MAs, like I would in Nape's idea...
wow ding ding. I think I just figured something out!
I was buying the breakout play but had a stop as if I had taken the Nape entry.
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Chase the entry.