Shared by
jj_BOWS
Yea - I did short this right out of the gate...and got scared out as soon as it took a sharp turn higher. I didn't cover sooner b/c I thought it would still come back. Out of a loss. Just a bit too early but I think this was the right set up to keep an eye out for. I should have covered sooner.
Q. for review - how do you tell on a morning drop like this that's it's too late to get in for a short? It was only a short time for it to fail but the drop/spike was enough that I got caught & stopped out.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-01-15 09:35:51 | CHTP | sell | $4.940 | short |
| 2014-01-15 09:35:51 | CHTP | sell | $4.940 | short |
| 2014-01-15 09:40:08 | CHTP | buy | $5.215 | 0 |
Comments
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you shorted when I was looking to buy lol http://www.tradervue.com/shared/trades/789020
A: as a guy who primarily trades the Open and early mornings (first hour), imo most big immediate morning moves are faded in the opposite direction. imo, NEVER chase big moves out the open, cause they usually move it the opposite direction, and rather quickly. more often than not, imo. of course the initial move is very likely in the "correct" direction, so any big down move, pops up violently, but then typically continues the downward price action for the remainder of the day. same goes for big upward moves. I see so many guys up on here buying things right after the open on their ORB plays, and they get owned around here, tbh.
dont chase those moves. let them happen, come back opposite direction, and THEN enter in the initial direction. your sell spot would have been a sweet short entry spot, for sure!!!