Trading Recap 4/14/15

Another loser for me today. I may have broken my rule about not shorting front sides of moves, although I thought since it wasn't a low floater it would be ok, but I was wrong.

White arrow is entry and exit really since it was fastest stop out I think I have ever took...

WUBA: I shorted around 64 when it looked like it was making lower highs on the 1 min chart and when it also broke its uptrend from before. I thought that since it was making the first lower highs on the 1min chart for the entire day that the move had ended and I could go short. Unfortunately, I got filled right before it made a nHOD and I had to scramble to cover since I only wanted to risk to 64.50s (yes, I know that is way too tight of a stop and I broke another of my rules to not try and make the stock's action work for the small account that I have) and it just jumped to 65 so I had to cover for double of what I wanted to risk. Right before I got filled, I noticed that it had come below a slight support area and then reclaimed it and that gave me some pause to think "Do I still want to short this?" and I still thought it was a good short. Looking back, if I had used the 2min chart I would have seen just a higher low essentially and no lower highs. I will look at the 2min and above chart from now on for confirmation on what I am seeing since that would have saved me a headache. If I had used the 2min chart, if the support broke and it started peaking, that may have been the better entry due to more confirmation. Notice the difference in the formation of the 1 and 2 min candles below.

Things to work on:

1. Use other candle timeframes to confirm what you are seeing.
2. Don't make the stock fit for a small account. If the stock requires too wide of a stop and you can't play a meaningful amount of shares because of that then forget it.
3. Wait for backside of move (when support becomes resistance).