Updating on 1/18
I was going to include my notes on this from the morning of the trade, but I can’t seem to find any. I’m not sure what the process was that brought me to this stock.. Potentially, I was listening to TraderTV and they mentioned it? I’m not sure..
Looking today, price had been pushing down steadily for over a year; and looking at the 4h chart, the last couple of days showed a rally with it failing to break an area that acted as both support and resistance a couple of days prior to that. This morning, price did gap up above that support/resistance area, but failed to hold the strength and quickly pushed down. After a strong push down and a short rally, I looked for entries to get in on the next move down.
Entry – $41.15
Target – $40.60
Stop – $41.30
R:R – 3.67
Entry – $41.14
Exit – $41.10
Price eventually triggered me into the trade, and quickly pushed down to 1R. However, it did that and rallied back up to my entry so quickly that I wasn’t able to move my stop to break even. Price largely stopped moving, hovering between my entry and stop, and since I had already missed one move (that, admittedly, wasn’t that large) I simply resolved this to be a loss. Fortunately, though, a few minutes later, price did make another push down (more of a gap-down on the 1min. chart), and I was able to move my stop to break even.
Not long after that, price rallied enough to hit my stop loss, and, fortunately for me, did so with minor slippage in profit.
Overall, I don’t think this was a good trade at all. I didn’t analyze it in the morning from what I can find, volume had been quite low, and the moves that were being made were doing so with a good amount of slippage. I wish I could remember/find out exactly what my mindset was here, so I can avoid it in the future, but since I can’t all I can say is that I have to be sure to follow my rules a bit better going forward. Make sure to write through my thought process, and focus on more smoothly moving securities/time frames.