After losing my first trade of the day, I decided I’d take an unconventional approach, look for something that was down at the time, bouncing off of support and try to fade a weak stock to the long side.
Looking through a few stocks, one that stood out to me was IVZ. It had pushed down on the day and was bouncing off some support that held up at the end of last month. When I looked at the 3 min. chart, it showed a nice up-move off of the lows and a clean base. I ran the numbers, had a good R:R, so I set an entry order. I did even less of a position this time, too, A) out of fear and B) to not risk too much using a new strategy.
Entry – $13.93
Exit – $13.85
Price pushed up a bit, enough to trigger me in, but then started pushing back down to the bottom of that base and fairly quickly stopped me out.
I’m not super upset about this trade, and when I get all of my trades back, I might try the strategy again (next Monday or Wednesday, more than likely) I think the only thing I should do differently with this strategy is look for more of a longer-term up-trend. Obviously whatever I use this strategy on won’t be in an overall uptrend, but maybe something that has been for the last couple of days. Looking at higher time-frames here and there’s almost no upward pressure in the recent history.
I’m glad I took a less-than-full position size, and I’m glad I pulled the trigger on this trade, ultimately. I just need to keep putting feathers in my cap, keep implementing changes and making sure I’m not making mistakes.