This trade sucked and I'm trying to learn from it. I bought in because I saw it holding a key level. However, each bar was ranging over .50c, and I bought it at the top of the range. It then QUICKLY broke the level and knifed out. A bit later I thought it might reverse off of VWAP and I bought in again. It continued down and I lost again.
I should NEVER buy in at the top of a range when something is ranging. It's probably best to stay out of a play when the price action is ranging that wide (anything over .20) on each bar. It had shown a bullish bar so I bought in. I was WAY over sized. I guess I was confident that it would go the way I thought. Ever other trade I made that day was green, and this was the 4th trade. I also know I should not trade a stock a 2nd time when it knifes hard on me. I should not have felt like the 2nd trade would work, and it didn't, it was just a brief bounce at VWAP on it's way down to the next key level.
This trade sucked and I'm trying to learn from it. I bought in because I saw it holding a key level. However, each bar was ranging over .50c, and I bought it at the top of the range. It then QUICKLY broke the level and knifed out. A bit later I thought it might reverse off of VWAP and I bought in again. It continued down and I lost again.
I should NEVER buy in at the top of a range when something is ranging. It's probably best to stay out of a play when the price action is ranging that wide (anything over .20) on each bar. It had shown a bullish bar so I bought in. I was WAY over sized. I guess I was confident that it would go the way I thought. Ever other trade I made that day was green, and this was the 4th trade. I also know I should not trade a stock a 2nd time when it knifes hard on me. I should not have felt like the 2nd trade would work, and it didn't, it was just a brief bounce at VWAP on it's way down to the next key level.
The first trade was decent, opening momentum. The trades later in the day were dumb. I don't normally trade like that, I shouldn't have bothered to risk anything at that time of day. Also volume had steadily decreased during the day, there was not volume to support a good move.
The first trade was decent, opening momentum. The trades later in the day were dumb. I don't normally trade like that, I shouldn't have bothered to risk anything at that time of day. Also volume had steadily decreased during the day, there was not volume to support a good move.
The first trade was decent, opening momentum. The trades later in the day were dumb. I don't normally trade like that, I shouldn't have bothered to risk anything at that time of day. Also volume had steadily decreased during the day, there was not volume to support a good move.
I don't like this entry. It was gapping down after a strong day, which is a pattern that works for me, but it sold off. I bought in a massive volume bar, but price closed lower for that bar. It was bearish. If it was bullish it would have been ok, but it wasn't. The subsequent bullish bars did not have anywhere near the volume the bear bar did.... I should have stayed out. But I did have a pretty tight stop loss, so that was good.
This was a decent entry and a good exit based on levels. In reality the risk reward wasn't that good here. My stop was around 2, where that first bar has a bottom tail, and it came close to stopping out, but I sold close to the 2.20ish level. In reality I was risking 1:1, and that's not good.
