Shared by
jj_BOWS
Had a feeling this was going to have a short squeeze so I waited till it spiked above yesterdays close and went short 2000 shares at $4.66 - It quickly ran higher and I covered at $4.75 for another loss.
q. for review - Should I put a tighter stop on my shorts so I don't get caught too much in the squeeze? I felt like this was actually a good entry but also didn't want to be wrong in my short decision if it kept going.
Q. for review - how do you tell if it's hitting the turning point and you should let it play out instead of covering? Are there any indicators you use - volume, ema's, etc. that I could incorporate into my trading when I take on a short position.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-01-16 09:52:53 | CHTP | sell | $4.660 | short |
| 2014-01-16 09:53:00 | CHTP | buy | $4.750 | short |
| 2014-01-16 09:53:00 | CHTP | buy | $4.750 | short |
| 2014-01-16 09:53:01 | CHTP | buy | $4.740 | short |
| 2014-01-16 09:53:01 | CHTP | buy | $4.750 | short |
| 2014-01-16 09:53:01 | CHTP | buy | $4.750 | short |
| 2014-01-16 09:53:01 | CHTP | buy | $4.750 | 0 |
Comments
JoJoTrades
@ kt_mishra: there are many, many types of setups out there. shorting parabolic moves is a common setup, and JJ really had the right trade idea here, for sure. unfortunately, they squeezed him to cover at the perfect Short spot.
amazingly, JJ did the incredible thing of RE-SHORTING a mere 20-seconds later, once he realized that YES, THIS WAS THE SHORT SPOT! see his awesome trade here, 20 seconds later:
http://www.tradervue.com/shared/trades/792185
Short at 4.78 and cover at 4.40, whcih was a support level, adn super wise. freaking beautiful....AMAZING patience on that one. actually, most amazing part is that you actually re-entered the trade so quickly after stopping out. awesome, dude.
kt_mishra_BOWS
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Hey Justin! I may be wrong here, but this doesn't look like a bows setup..
you were right in anticipating that it would turn around at the resistance, but these levels aren't always precise as in this case. I was watching this stock too, and it looked like a red-to-green the way it started out, so I was thinking long.. Anyway, my 2 cents. Good luck, dude!