So, lets begin with yesterday trade in REN:
REN had a solid up day closing up 58% from the prior day on strong volume. My plan going into the next trading day was that if it gapped down I'd short into a pop risking on r.g or HOD if it stuffed a r.g move or it gapped up but immediately washed out.
Next day it gapped up slightly but immediately washed out going g.r.
I was now interested in shorting into the next pop risking off of the $6.30 HOD. As price popped I entered my short position at $6.09. Price quickly snapped down to $5.67 before rebounding back to $5.93. Price never just goes straight down so this pop didn't have me too concerned. At 9:45 we got another snap down to $5.60, to which I was up roughly 7% on the trade. I contemplated covering here but I thought we'd at least get a $5.50 test. Unfortunately that did not happen, volume dropped off and the stock started to grind back up towards $6. We did get another slight pull but the buyers jumped in and price put in a higher low. At this point I was hoping (never a good strategy in trading) for a $6 reject and a fade. Again no such luck, price quickly surged through $6 and I was forced to cover into a r.g move at 6.07.
One of he reasons I didn't cover into the 5.60 snap was that I got a little greedy, with such a small account I was thinking about the profits and not on the price action. When 5.60 held numerous times I should have recognised that and covered up.
EOD CHART
LESSON LEARNED
Pay attention to price levels holding up. When they do be safe and exit position, you're never going to catch the dead bottom. Perfection is impossible, enter and exit into favourable situations and don't be greedy.
"We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends."
We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.
We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.
We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.