Hey everyone. this post is about $FRTA which I was shorting earlier this morning and covered for a loss.
in the morning, the stock was uptrending and I was looking to short a lower high with a cover point at g/r. I shorted at $4.39 at 9:40 a.m. with day high at $4.45, thinking that would be the lower high, but at 9:41 the stock spiked 20 cents and came back down even further than my short entry. ive seen this happen before on other stocks but this was too scary of a move so I covered at $4.52 as it was going down when in actuality my short entry would have been a huge win now.
see chart below....
these kind of spikes scare me out. that was a 20 cent spike from my short in 1 minute, that came right back down. had I looked at resistance further back, I would have seen that $6.60 resistance from last month and tried to hold if it didn't break that, but cutting losses quickly is rule #1 and I tried to cut losses as quick as I could.
my plan was to cover at g/r so to see it dropping even further than that now makes me sick but I can only learn from this. hopefully you all can learn from this too.
Don't feel bad about it buddy, good lesson learned. I did almost the same trade as you, then tried again on the second minor spike - and squeezed again. We were in the right ball park, at the right game, just a bit off on the timing ;-) Multiday resistance around there, with a bad sushi type chart = long term bag holders, making it difficult to spike too much, also, markets were down. We'll do better next time :-)
It's okay no worries, my advice is short the higher low - best case you win, worst case - you lose a little, not a happy case - you miss out and a higher low never happens, it just keeps crashing, but you don't lose anything
@Chaddo hey there, thanks for your reply. i did see the bull flag formation and still got in so thats all my fault, but it is really nice to have a plan that would have played out if my timing was better. i was too emotionally shook to try to short again at the $6.50 retest/failure so i need to try not to let my emotions get in the way of trading. really bad sushi chart and massive short squeeze yesterday made me short-biased today so i am proud that i would have been correct. we will do better
@Skiwi hey skiwi, thank you for reading/replying. after the spike to $4.45, I was thinking that $4.39 would be the shorter high which was why i shorted there. i overlooked the importance of the bull flag formation as i was so short biased, which was why i got in at that bull flag formation and squeezed out. had i shorted at the second $6.50 retest, the risk would have been way less and i did see that but i was too emotionally drained to pull the trigger. need to watch for next time.
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