- Hig has been weak all day while the market consolidated.
- I had noticed the breakdown in the afternoon when it broke down 28 on huge volume
- I never want to make the mistake of chasing (pat on back), so I waited on failure of retracement
- Got in at 28 for 500 shares.
- At this time, futures was bouncing hard and people on twitter were saying buy programs, gettting longs, etc.
- I panicked and got out at 27.99. Then chased it a bit (emotions got hold of me), at 27.91 and 27.90 for 1000 shares total. Then got shaken out because of market strength.
What I should have done is:
- I had a mental stop loss of 28.05 which was 1 cent right before the breakdown took place. That's a potentially $25 loss (not including commissions)
- Then waited on it to breakdown, as long as it remained below this level.
- Added another 500 shares as it shows weakening/bearish wedge at 27.95
- Stop loss would now be moved to 28. Which would still give me a potential loss of 25
- I would probably have covered around 27.8 giving me a profit of 175
- That's a 7 to 1 reward to risk
TRADE THE STOCK AND ITS SETUP. SET A STOP AND LET IT RUN. IT'S WEAK FOR A REASON. DON'T LET "RELATIONSHIPS" GET YOU OUT A GOOD TRADE.
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