Shared by
EL_BOWS
Buy high, sell low: how to lose money.
Bought on break of previous price resistance. Immediately reversed, sold as it broke below the MAs. Seconds after sell it reversed and went up to my target.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-02-05 14:38:00 | UVXY | buy | $103.440 | long |
| 2014-02-05 14:50:38 | UVXY | sell | $102.380 | 0 |
Comments
Markmandy54
Entry looked good, nice normal P/B to support and MA's therefore stop was too tight.
oly_BOWS
Maybe a 101 stop.. given the market behavior scale half at 105ish and the rest would have been flat or so.
I think it was worth a shot and entry is fine
EL_BOWS
You're all right -- I have no problem with the entry, and I could see the low volume orderly pullback, but it hit my max stop. My position was too heavy for a stock that can rip and drop $4 in 15 minutes. Position sizing is one of my biggest obstacles to overcome at this point. You'll see a lot of my trades tagged with "good-pick-bad-execution" or "too-heavy", which are indicators of that problem.
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This should have been a profitable trade. 1 option is to reduce share size so that you can afford to give the stock more room to work. Especially a stock like this one that can move $1.00 or more in a blink of an eye. Remember price action was breaking the ma's constantly, so your support level was actually price support around $100.00.
When I finally started reducing share size to fit my risk level, and allow the stock room to work I've been doing much better.