I’m not doing a full analysis of this quite yet, but something I wanted to get down before I forget. This stock is priced around $6.30, and while, because of it, I had a relatively tight stop and good R:R, it’s also already down nearly 4% (on the day, not since my entry) and still hasn’t hit 1R.
IDK. Maybe I shouldn’t pay as much attention to percentage moves, depending, but I think percentage moves are relatively important, and because of that, I’m thinking I want to increase the minimum price of stocks I’ll look at to day trade. Another good thing about that will be that it’ll lower the number of potential stocks to look at. I think I’ll do that regardless of how this turns out…
I actually said a lot about this trade in the morning analysis so I’ll drop that here, and then talk a bit about the close:
SOFI – Short – This gapped down this morning to some lows that it reached a couple weeks ago, and that also held up back at the end of January, but rallied from there to a resistance area from last week. Below the lows of the day, there’s a decent gap to the next key level, so this looks like a great retest opportunity.
I dropped down to some lower time frames to see if I could find any entries, but couldn’t, and got frustrated that this was starting to move even though I hadn’t run numbers yet. It looks like something I could/will miss and it’s frustrating, but at the same time the push back down might be really fast and that’s also scaring me.
Entry – $6.40
Target – $6.00
Stop – $6.46
R:R – 6.67
Entry – $6.40
A few things here already. 1) Instead of doing a full analysis of all the stocks I pulled out. I decided to look for entries here because it looked tradable. It was a clean pattern and started to move already and I didn’t want to miss it, so I found entries and entered an order and set alerts. 2) I need to rely more on my instincts and trusting myself that I understand what I’m looking at, and this is one of those scenarios where I’m trusting a gut feeling and honing my instincts as a trader and 3) This is complicated but I need to find more of a routine. Already this morning I wasn’t sure if I was going to day-trade or swing trade…
In the time it took me to type the paragraph above, my trade has already triggered. I think I’m just going to manage this one, since it’s a 5 min. chart, then either come back here to find some candidates to swing trade later — though if I’m going to pull the trigger later, I should do the analysis later…
Exit – $6.40
This exit has happened a few times, lately. Price pushes just enough to reach 1R, I move my stop to break even, then price rallies and stops me out.
Need to figure out/work on getting into my trades at these ‘types’ of levels — where I’m getting in at the retest level — rather than the levels I got in on this actual trade, the break of the low prior to the retest.
I took a shot at that in AKAM in my practice account.