Patience is a Virtue… Finally Found an Entry on $SPWR

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Trading SPWR
Finding an entry to trade SPWR

Why SPWR?

I originally had this ticker on watch because of the nightly scans that Nate puts together at Investors Underground. Nothing about it interested me to begin with. I just had it on one of my charts off to the side on my right-hand side monitor. It didn’t come to mind again until it popped up on one of my EasyScans on TC2000 at around 10am.

I completely missed the move at open and felt completely unprepared for the move over $7.00. The trade felt too risky for me so I stayed out of the game. At the time, I had just finished trading $PPHM so hadn’t fully regained focus after this win. This is mostly because I am inexperienced. I feel with a little more confidence I would probably have been able to trade this a little earlier.

The looooong grind!

From just after 10am I sat there and watched SPWR tick for tick as it would pop, grind and consolidate a couple of times for an hour and a half. Members were talking about it in the IU momentum chat and this just added to my frustration. I remember thinking how ridiculous it was, why couldn’t I find an entry I was comfortable with.

Every time I thought about trading this stock something in the chart would put doubt in my mind and I would hold off, then it would rip 10-15 cents. I became more and more frustrated with it and the longer I looked at it the more doubt I had that I wouldn’t get a trade out of it.

Fear of missing out

Trading chat for SPWRAs it edged closer to $7.50 the FOMO started to set in and I was at the point where I thought I have to walk away before I do something stupid. So, I thought all good I’ll leave it at that and walk away. As soon as I decided to do that the frustration went away and I started to feel comfortable.

I was looking over the chart and trying to figure out where I could have entered if the same thing were to happen in the future. That’s when I decided I would reach out to Nate to get a bit of insight on how I could have played this a little better. I just couldn’t see where I could have entered and felt comfortable with the trade. Nate did say in the nightly scans not to force a trade so I was very cautious about trading this stock. Straight after I sent him the message I looked back at the chart and something I really like started to happen.

The Plan. Risk vs Reward

When I looked back at the chart it had just done a quick 8c pop up to $7.50 then come straight back down to $7.42. After that it consolidated for a few minutes sitting on that $7.42 mark. It then started to perk a little and I was like yep it’s been doing this all day, there is a good chance we are going to see a break over $7.50 for a 10-15c gain. The gains previously had all been around that.

I set my risk at $7.42, try to get in just before $7.50 in anticipation for the break with the potential it could go to $7.65. This what had been happening previously. I got filled at $7.48 for a 2000 share position it went down for a couple of seconds and then it was off to the races. An hour and a half of watching this tick for tick for a trade that lasted 8 minutes. Once it broke $7.60 it was enough for me I was taking my profits and running haha. I closed the position at $7.62 for a small profit.

I had a risk of 6c for a potential reward of 15c, a 2.5:1 risk to reward ratio. After this I was done for the day. It was enough for me.

 

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