RIMM - SHORT

DAILY

30MIN

5MIN

1 MIN

Reasons for shorting:

• RIMM breaks down multi-day consolidation to the downside
• RIMM has been lagging/much weaker than the general market
• Market overall is extremely weak
• RIMM making consecutive lower highs/lower lows after holding below the 54.25 level
• Shorted on retrace to prior lows and downtrending vwap
• This was a trade to hold due to clear breakdown of multi-day support and continuation of downtrend on longer term timeframes, namely the daily, 30min, 5min, etc.

Execution:

• I was late to the party. Therefore I didn't go in full size.
• Stop was 23 cents away (just above the prior lower high). It's an ok stop given the clear breakdown from a longer term level, but NOT the best risk/reward execution.
• I would have started scaling out if price starts holding above the downtrending VWAP and complete stop out on taking out the prior lower high.
• Target was around 53.20ish calculated from its Daily ATR and measured move 
• I covered 1/3 position from measured move of this leg down, plus it was heading down vertically.
• The add of 1/2 position subsequent to the 1st cover was done too aggressively and with too much size (I was too confident in my position and got eager to add more to it).
• I had to get out full position when price consolidated and made a higher high. Slippage got me to cover at the bad price. But I wasn't going to let my whole position get negative (protection of capital = job #1).

What I should have done:

• I need to focus better after the initial stop out and look for positions to reload once price retraces to prior breakdown area/resistance and fails.
• I wasn't mentally prepared and walked away to do something else.