Trading Recap 6/23/2015

Today was also not a good day due to me breaking some of the rules I set for myself. I took trades with stops that were too tight for the stocks I was playing, which caused me to stop out while I was right all along (for the most part). I will have to remind myself to not take any trade where the stop is too wide for my account. I also have to see about just exiting a stock when I am in profit vs. waiting and having it become breakeven because that it happened again today.

White arrows are entries followed by their exits.

MOMO: I saw that they had a private offer, like AMCN, and was most likely bullshit so I was short biased. I noticed a similar pattern to SGYP where it would spike up and get rejected while it was forming a lower high so when I saw that and in addition to the fact that it went above the premkt highs and got rejected and now was acting as resistance, I thought it could fade/flush. I shorted and it immediate spiked to HODs and I covered because my risk was too tight (.60 over/under). In never got past HOD and it came lower again. This time I thought it was done because it again got HOD rejected and the premkt resistance was still acting as resistance. I shorted again and it did the same thing and I stopped out due to my too tight of a stop. It ended up fading kind of slowly the rest of the day but the point is I would not have had two losses and would have had a small winner possibly had I waited for the stock to setup with a proper tight stop.

BCRX: I was interested in this for a short due to the overextended daily chart. This was actually a winner for me but I didn't take it because I thought the stock could go down more and it eventually did but it came back to my breakeven and I topticked the bounce for my cover... Not the best moment for me. Today it looked weak and I wanted to see the afternoon lows peak from yesterday. Once they peaked I started in and added when .50 peaked. It looked to be a good win until the bounce came to my breakeven and going with my mantra of always breaking even no matter what due to my small account I took it off and almost top ticked it by a penny or two. It then proceeded to fade, albeit slowly, and make nLODs. It would have been a pretty boring trade but a profitable one nonetheless had I stayed in it.

Things to work on:

1. Don't take a trade if the stop is too wide for your small account. Wait for a better setup.
2. Look to sell/cover when you have at least a $50 win if it starts going the opposite way.