Practice Trade
Updating on 2/16
This was another candidate for my new strategy, and thus was a practice trade. Before I put down my analysis from the 6th, I want to call something out already: I got in to this at the prior resistance level of $100 from about 2 weeks before the day I got in; but the drop took out a higher support area that was resistance after the resistance level I traded and held up back in October/November of last year. (I’ll make notes on the chart, in case this phrasing is confusing)
This probably would’ve been a better candidate for this strategy if I looked to get in at that key level rather than the one I did get in it. Technically, though, if I had done that, I would’ve gotten in earlier, and it would have definitely been a losing trade. While as of right now, I’m still technically in this trade (thought it’s been long enough, I think I’m just going to cancel it since I’m not really actively managing it).
Here are my notes from the 6th:
This looks like a good candidate for a new strategy I wanted to try. Since I don’t want to play the breakouts, and I’m looking more for retests, I’ve considered putting in buy-limit orders at support areas while a security is on it’s way down, and then putting my stop at the next level below that hoping to catch a huge move on a bounce off of support. AMZN, too, has been pushing up since the beginning of the year; and on the way up has taken out a couple of prior resistance areas. Price spiked last Thursday, but then dropped all day Friday and today. I’m considering putting in a limit order at one of those resistance areas. We’ll see
Like I said, technically I’m still in this trade, though price did get dangerously close to my stop at one point. This could end up being a solid winner, but even if it does, I’ve been holding for longer than I’d like to hold a single security — unless I’m doing a much-longer term strategy and am planning on holding for a week+ — but that should/would come with wider stops, too. And, technically, when I first started swing trading stocks (again) I wanted that to be the case, it just hasn’t proved out.
I’m going back and forth on whether I want to just sell this or not. I guess it’s not hurting anything to hold and monitor and see how it ultimately shakes out — it never hit 1R so I’m technically managing it exactly according to my rules. I guess I will leave it and hope to update this when I finally get out. I can always take another Amazon position in this account if I see another pattern I like.
Update 2/23
I never looked at this again after the 16th, but I didn’t realize it until today, when I’m uploading this post. I checked my account, and I got stopped out of this for a full loss on the 17th.