Shared by
johnc_BOWS
I chased this. Optimal entry would've been in the .30s. I ran a 4% breakdown scan on TC2000 and found this as it was breaking down.
Although I don't use the 1-minute chart, I decided to include it to illustrate how stressful it can be to look at every movement. Since it was my last pos of the day (on which I was risking $50... more than half of my profits at that point), I was really nervous that this could reverse and put me at breakeven.
I decided to change my mindset by video recording this trade. Doing this helped tremendously because I was able to just leave my stop price and not micromanage the trade. I figured that, even if the trade reverses, I'll learn something about what price and volume action looks like when a stock squeezes instead of breaking down.
It worked out and I drew potential lines of support, taking profit out just before price got to those areas. I covered all of it because Clique Fund makes you close out all shorts before the end of the day. This turned out to be the bottom anyway.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-12-11 14:35:59 | PDCE | sell | $53.030 | short |
| 2013-12-11 15:11:45 | PDCE | buy | $52.850 | short |
| 2013-12-11 15:30:20 | PDCE | buy | $52.530 | short |
| 2013-12-11 15:44:51 | PDCE | buy | $52.400 | 0 |
Comments
markmandy54_BOWS
johnc_BOWS
Tyler, if you've never experienced the vulnerability of feeling emotionally unstable, then I'm afraid you'll never understand what some of us experience while trading real money.
I can talk to you all day about the LOGICAL and correct entries and exits, right place to scale out. But when it came time for me to trade REAL money, the rules and knowledge went out the window, especially when I took huge losses early on. Every single trader I've spoken to has experienced this, but each of them recovered differently. Maybe you're different.
iStryker_BOWS
Hi John, I have traded live before, for the most part getting in was not the problem, it was getting out, especially if the trade went against you.
I honestly have little emotions when I short things. The setup is screaming at me...wait for it to tap the 9ema or pop over it and fail. Its just patience.
Then again, maybe I found setups that are less emotional. For example I short things around the 9ema (tap or pop then fail), others short them on double and triple bottom taps. Which can go against you. Some of them break drop 10-15 cents, then spike back up to your stop, and you are like WTF, I was looking for 20-25 cents mininium to sell half, I should've sold sooner. When I short around the 9ema my stops are tight, less emotions, double/triple bottom taps your stop could be 50 cents away.
another example is I trade triple tap flat top and flag breakouts, I rarely touch double taps, too risky.
As for exits on Shorts, I find them less emotional too, however they do bother me a little. First 1/2 sell I look for is when it gets extended from 9ema, but usually needs to more atleast 0.5% for me to tell. The next selll if it does not get me a reason to sell but it drops a lot (ie $1.00) I'll sell another 1/4. Then I do not sell the 1/4 until I have a reason.
I could keep going, but I want to end with this. I tell this to a number of people, Your 1/2 and 1/4 sell is your trade, let the last 1/4 ride. If the last 1/4 goes against you, who cares, your happy, if the last 1/4 rips then you'll be kicking yourself and might go on tilt on your next trade thinking about the profits you miss. Its also ok to sell 1/8th, at some point, then really let the 1/8th ride, no mercy.
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I don't know why you got nervous, the stock didn't give you any reason it was going to reverse. on the 5min it continue to flag under the 9ema, even though you chased it you were completely safe