Anyway, broke even on a trade today I took in the later hours of my trading session (around 11AM). I was talking to my trading buddy and we talked about how a lot of the ideas/thesis we have at the open, while more volatile, usually work to a good degree and that trades later on may be more hit or miss. Obviously the trades at the open are much more risky and (cue it is hard for small account) but on the same token trades with a clear pattern setting up are less risk etc. Just some thoughts. If something is setting up, you should take it if it fits your parameters. It wasn't necessarily in the middle of lull (it was only around 11AM) so there was still a little time left and the market was volatile. I don't regret taking the trade even though I lost on commissions, which in the grand scheme of things isn't a big deal.
White arrow is entry followed by exit.
RLYP: I originally had this on watch in the morning for a fade since the daily looked nice for a continued fade and on top of that it had relative weakness compared to the IBB for the prior day, which gave me added confidence in the trade. It went to the prior day's support (now resistance) in the morning and I saw it then and thought this would be a good short and then it had failed follow through and I don't know why but I didn't enter the trade. It would have been a very nice short. Anyway, later in the day after the oil/Yellen news had been digested by the market and it was heading back lower, I saw a g/r rejection on RLYP and it failing at the resistance. This seemed like a good short opportunity since it went up with the market but now with the market failing and its relative weakness, it might fade back to the LODs or close. I shorted at $16 and did get a small wash but I wanted to be patient with it. Unfortunately, it came back and reclaimed the $15.9 level and I did give it some leeway since I didn't want to repeat LNKD from Monday. It jumped a bit and looked liked it stuffed so I held on but it just kept holding on so I took if off for breakeven which was the right choice.
BTU: I had this on watch due to it gapping up even though the energy sector wasn't doing too hot. I thought the news was fluff and unless it got a trend going, all the chasers thinking it would be the next ENOC (since it had similar news of a ruling in their favor) would sell. It flushed/stuffed right away at the open but then consolidated near the lows which is where I was very interested but I didn't go for it. It was a nice all day fade.
VIAB: I had this on watch for more failed follow through. It just dumped at the open and didn't provide any pops. Ideally, with the failed follow through you just start in partial and add on pops with risk to r/g or $33 over/under. Any short covering to provide an entry would have been nice but oh well.
SCTY: I had this on watch for continued fade. However, I figured it would be on a lot of people's radars and there might be short covering at the open which got me to only wanting to short pops/lower highs. In the below chart I drew a small price line and once it went above that and fell back below and peaked, I was interested in the $19.80 range. Didn't take it due to the Yellen comments about to happen but it worked nicely for a scalp. While I was in the RLYP trade though, I noticed this had a really nice pattern of higher lows/ABCD and if I wasn't in RLYP I probably would have gone long.
Things to work on:
1. Take morning trades?
2. Good job of being able to get out for breakeven and making an objective decision and not an emotional one. Keep it up.
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