I actually traded this stock twice on Friday 3rd of February. Out of the 3 trades I did this day this was by far the one I felt most confident with. There was a lot of chatter pre-market regarding this ticker in the IU chatroom. I thought it would be a good idea to keep it on watch. Out of the gate it dropped but quickly snapped back. I wasn’t going to chase the move out of the gate I had nothing to base my trade on. It took a bit of restraint not to get in out of the gate, I had a bit of a feeling of missing out. After the opening move it pulled back quite quickly. It consolidated for a few minutes then dropped again.
At the time, I was also watching CERU. More on that in another post. I watched it tick for tick hoping I could see a setup for a trade. After a little while I saw what looked like an ABCD type pattern starting to form. I was like sweet I might actually get a trade out of this. At 10am it was starting to move and I was just about to buy and it pulled back quickly. So, I held off.
This is what I was thinking, if it pulls back but holds trend and holds VWAP then I’m in. I set my risk at previous low $10.72 and wanted to buy in low $10.80s with the possibility of reward at HOD with the chance it could go further. I got filled for a small position of 1000 shares at $10.81. It did basically what was talked about in chat and I ended up getting out of my position at $11.08. I didn’t have the nerve to hold it any longer. I’m still quite inexperienced. What I was really happy about with this trade is that I stuck to my rules I didn’t get greedy and I sold for a small profit.
The 2nd trade on this stock was just after 10:30am, It was setting up in a very similar pattern as before, it was holding trend and I thought it might go again. My plan on this was probably not the best but was lucky to get out of this for a tiny profit pretty much break even. When it bounced off the trend line I got in, my plan was if it breaks trend then get out or if it doesn’t break the previous high then get out. Unfortunately, it never broke the previous high and I was lucky to get out when I did. It dropped very quickly. I got in at $10.97 and was out on the 1st red candle at $11.01. I was lucky that I stuck to my guns it didn’t do what I wanted, so I followed my plan and got out.