So I netted $243 today, however, my first trade out of the gate could have been a disaster as I broke a bunch of rules, so in the end I'm not happy with my performance.
RDUS - There was no real news on RDUS, just that their competitor AMGN had news about a very similar drug for osteoporosis. From what i understand AMGN's drug had less of a reduction (73%) than RDUS's (83%)? I don't fully understand it, but it gave fuel for RDUS run up. I looked for other news and saw nothing.
I got biased in that I thought it was up "too much" from it's Friday's close of $27.
I'm very aware nothing is ever up or down too much. Any stock can do anything at anytime. It's just the way the market works. I got biased and started in short small shares 50 at a time. $32.90, $33.62, $34.41, $34.78, $35.17. 250 shares at this point. Keep in mind with my BP I could purchase, or short in this case, up to 900 shares roughly, which would leave very little room for error. I added 100 more @ $35.90, 150 @ $35.85. 100 more @ $36.58. So I had 600 shares at an average of $35.28. The stock hit $37 before pullinjg back. Freakin scary!!!! DON'T AVERAGE LOSERS!!! At least not overleveraging.
Now if you were to look back at the end of day it looks like a great short. The thing was I started in WAY too early. I also ended up sizing in WAY TOO BIG!!! I didn't even let it get to daily resistance first, which I had at $34.46 & $35.02, I saw no resistance around the top area $37.....maybe I'm missing something. Going to have to look back at chart and study it. Either way, shitty trading with lucky ending. I think I need to have a bit more patiece out of the gate.
After that, I traded 50-100 shares a few more times around 10:00 and had much better entries, just should have let a small piece run almost everytime.
I switch between 1 minute and 5 minute.
Sorry I meant lower high not higher low.:)
You should cut losses quicker. This could have really screwed over your account and your emotions if it continued higher! Rule 1: Cut losses quick. Re-enter into the trade if it starts doing what you planned earlier.
Yup, you said it! "Cut your losses quick"! I payed dearly for it overnight into today. No ones fault but my own. I have to stop being too damn stubborn if I'm going to have a chance at success trading.
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