Shared by
jj_BOWS
I heard this one on Bloomberg radio being talked about as a large % loser on my drive home after dropping the kiddo off. I pulled up the chart as soon as I got back & waited for what looked to be a good entry to short 100 shares. I thought it was going to break through $64 so I shorted another 100 at $64.24 - I think this is where this trade when bad. It was not a good spot as it turned higher so I sold out all 200 with a mrkt order to quickly cover my position.
I tried to reshort another 100 shares at $65 and covered at $64.82 when it failed to go lower - I didn't want to give back any gains.
I tried one more time to reshort at $65 on the next tap at this level this time with 200 shares feeling a bit more confident it was going to fail as it seemed like this was the level of resistance. I got greedy and didn't cover when it hit $64.5 as I was trying to give it more time to flush. Finally covered almost even as I admitted to myself I was wrong in my thinking.
Q. for review- I know I could have played this better by not trying to short more on my first attempt so how do you know when there is the right place to add to your position before you close out?
Q. How many times do you give your thinking a chance before you give up and admit to yourself that you're wrong. I really thought $65 was the level to short & that it would break lower than $64. I think that was my greed talking to me.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-01-23 11:21:51 | HLF | sell | $66.530 | short |
| 2014-01-23 11:38:13 | HLF | sell | $64.240 | short |
| 2014-01-23 11:41:02 | HLF | buy | $64.720 | short |
| 2014-01-23 11:41:03 | HLF | buy | $64.690 | 0 |
| 2014-01-23 11:43:47 | HLF | sell | $65.000 | short |
| 2014-01-23 11:45:00 | HLF | buy | $64.820 | 0 |
| 2014-01-23 11:57:35 | HLF | sell | $65.000 | short |
| 2014-01-23 12:09:43 | HLF | buy | $64.980 | 0 |
Comments
JoJoTrades
wow...talk about amazing initial entry and then patience to let it come down. really, really too bad you Added down there instead of just covering up. I understand you had some set level in mind for it to crack and get down below...but I would rather trust the chart and the tape, rather than some pre-determined level. all those hammers on the 1-min, prior to u adding, should have been a warning sign, to consider covering...not adding o.O; I think you were hella greedy & prolly a lilttle over-confident on the Add at the bottom lmao XD but still, trade worked out well due to the awesome initial entry...which is badass.
too many guys around here only short LOD, and buy HOD...love seeing the beautiful Short at the top of an extended rip like that. super sweet ^^
EL_BOWS
Interesting Sayed -- I don't have the eyes for the bear flag that you highlighted in your pic.
JJ, you shorted at exactly where he highlighted, but it looks like you overthought it and got out early without a reason to sell. Your first entry was perfect, wow. Sweet gonads. Your second entry was a chase, there was no setup and it was extended already. Third entry was meh -- it was anticipation of a $65 breakdown, but you got a scalp out of it. Fourth entry wasn't bad -- it is a mini 1-2-3, you bought on confirmation of a lower high and it breaking through the MA. Just needed patience.
If I'd been watching this, toward the end of the day, I'd be looking at shorting at just under 64 where it kept tapping and tapping, on confirmation of the break of support with the MAs riding above. It's a pretty safe spot to hit it relatively hard (very little risk, pretty high reward).
markmandy54_BOWS
jj_BOWS
Love that screen shot Sayed! That's exactly why I spotted that entry for my short.
@ScalpTrade- I'm finding it easier and easier to let the charts tell me when to get out and I screwed it all up by being too greedy and telling myself something different than what was actually taking place. The charts don't lie!
Thanks again everyone!
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First short was nice, when it failed that 67 area along with an intraday double top.Next add spot would have been that Bear flag break.
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