Shared by
math_psycho
Failed test of a whole number on a weak stock while the market was trending down. This was an experimental trade that is not part of my usual strategy. It worked this time, but I am hesitant to draw any conclusions about long term viability. My profit target was also perhaps a little too conservative and this needs to be worked out in the strategy as well.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2018-11-09 12:47:37 | ATVI | sell | $56.820 | short |
| 2018-11-09 12:52:16 | ATVI | buy | $56.540 | 0 |
Comments
boldandnuts
There was a premarket level sitting at 56.80 where ATVI had found some resistance. I had the level down, but did not take this one as I was in three other positions already.
Bummer you took your profit so early :-( Ever thought about scaling out? In two increments for example? Take half off at a pre-defined target and keep the rest until "reason to cover" to milk the whole move. For example, for the remaining position use a trailing stop or exit when the high of the last 5m candle is breached... simple solution.
Once your first target is hit, set a hard stop on the remainder position for where your entry was. Either you get stopped out with a small profit due to your partial profit or you get a bigger chunk of the whole move. Especially nice when you hit the top and the stock sells off for the rest of the day... exit at the close of the market or swing it to the next day then.
math_psycho
Thanks for the comments. My entry on this ticker was not based on any resistance levels, but rather on a perception of being over extended to the upside and the whole number rejection. I had played this stock to the short side for the breakdowns in the early morning session and I was looking for another reason to short it later. Like I said, this is not part of my usual strategy and this trade represents an attempt to extend my strategy to this kind of play. I usually do take a partial and then hold 10-20% of my position for the possible longer term gain. I should have done that here and I will be doing that in the future. Thanks again for the thoughts!
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i got smoked on this ticker Friday my biggest loss so far. you nailed the top nice job. di you use any premarket levels to determine this entry or was it just the whole number rejection. and are you on discord