RARE Trade on Jan 10, 2020 11:37 from Defy: Tradervue User Stock Trades.

OK I wasn’t exactly happy with how I went about this trade. I had discovered it in the afternoon on my scanner and realized it was up $14 per share on some news regarding positive results of one of their studies.

First off looking back I don’t think that’s the proper way to take a trade considering I’m not even sure of the relevancy of the news but I was more focused on the price action and was anticipating the potential of a short squeeze.

Catcher took a starter at $58, my thesis was there has to be short stead of accumulated positions around the 58.30 area and with the volatility of the stock I figured that they would have stop losses in place to avoid getting destroyed on the long side.

After taking the initial starter it ended up dropping down to just below 57. Although a little frustrating, I was waiting for a reversal which did happen so I added to the position bringing down my average.

Initial thing I don’t like was that I was looking for a homerun and held it through the second dip to $56.80. That should have been my exit but I stayed confident in my thesis that this would run back up to Hy’s.

Ended up showing some strength holding around the 57.20-57.40 which provided me confidence to stay in it I did have an opportunity twice to get out for a gain but stayed overly committed to my thesis. Eventually ended up covering the position for a loss due to the volume feeling as though it was drying up and the consolidation didn’t seem as though it was going my way. Ended up being the best decision because it trending down to the $54 area at end of day.

Not my best trade but I am happy that I cut the position when I did and didn’t become married to holding