To tell you the honest truth I have been waiting for this trade opportunity to set up for several weeks. When it finally gapped down after I posted about the set up…I was shaking with a combination of excitement and fear! Sort of like dating the hottest girl in school with your inner insecurities kicking in that gives you the feeling she is out of your league. You finally go out on that date and you stumble and bumble and maybe make a move too early before she is ready. Well I jumped in on the gap down day…normally I tell myself to sit on my hands…a man who falls off a cliff is not going to bounce and start running the same day- in most cases! Unless he is some kind of Navy Seal.
I had written out a sort of “target” or “plan” at or near $1…I took (in 20/20 hindsight) a not great entry @ $1.11. I had my mental stop in place! Trust me! Like I have said before: “I am not a very good trader” and I need your help and feedback to try to improve. That is why I am posting up these trades to try to stimulate discussion which acts as “therapy” for a trader and helps put in place better habits and reactions. Anyway the area I need to most improvement is selling! Selling is the hardest decision for me for some reason. I got some therapy today because I sold! I don’t know why but the entry although mostly always fuzzy is more clear than the exit- maybe because of fear, greed, regret…I really need to stomp out those worthless emotions.
Today I hit the sell button at $1.61. Booking a 45% gain and $5000 profit. My target was profit driven along with some function of chart technical’s. I always think it can go a little higher and most likely it will…but it is hitting a potential resistance zone at the edge of the gap. If it pulls back it could set up another classical bullish pattern and offer a reentry point. And then there is the feedback- Thank you all to those that provided comments on the set up idea. I hope we can share more dialog and ideas in the future together. I am more of a technical trader than a fundamentalist. I like to be on the contrarian side most of the time, but not all of the time. Who knows about this one? I just thought it looked very attractive technically! Sort of like the hot Thai Girl looking like she has all the right features, except you never know if you will get a “surprise” when the action starts.
As I look down at my level 1 GM is ticking higher now 1.74…but I am happy. A target was reached and a profit was booked! Now let’s go find another good trade!
Good Trading,Eric F