Context:

KODK was a hot stock on 1/9/2018, trading over 30 million in volume and up by more than 114% on the day. The news that supported this was an announcement to develop a new cryptocurrency called KodakCoin. Cryptocurrency is a hot sector right now.

 

Hindsight learnings:

1. I did not do a good job of defining my entry and exit targets. No stop loss. Without a clear exit point, I began hoping for a rebound (bad strategy). 

 

2. I bought in 5 minutes prior to the opening bell. Probably should wait and see what the stock does at opening before entering trade

 

3. Didn't see the warning signs (fading volume, support breakdown) Was "hoping" for a exit target of >=15.80/share (30% profit). 52 week high was 15.50/share. Unlikely that today's high would crack the 52 week high. Emotions took over when I began holding this stock and hoping for a rebound, watching candle by candle as it tumbled down in $

 

4. Missed the bearish pattern of the 52 week chart. This stock would have been a better candidate for shorting, rather than longing

 

5. Glad that I got to practice executing a trade. Although I would have loved to execute this at a profit, this loss teaches me more about my weaknesses. Even though this was a paper trade, it still felt like a real experience.

 

6. Noticed later that Tim Sykes posted about this stock and how many of his students banked on the long side. Some were in at $4/share, so if they locked in profits at $13/share, they nailed it.