PAPER TRADE (WIN)

• Setup: -------------------------------------------------------------------- Daily Range Break/Intraday Flag Break
• Entry: --------------------------------------------------------------------- $2.20
• Shares: ------------------------------------------------------------------- 500/1000
• Stop: ---------------------------------------------------------------------- $2.14/2.24
• T1: ------------------------------------------------------------------------- $2.52
• T2: ------------------------------------------------------------------------- $2.80
• Reward:Risk Ratio (T1): -------------------------------------------- 5.33:1
• Exit: ----------------------------------------------------------------------- $2.34/$2.24

• Profit/(Loss) With Commission: -------------------------------- $9.00

• Details:
  Flag break, daily range break, 1500 shares. I bought this at $2.20 on a break of the flag on the intraday 5 min chart (11am). I only entered a small position there since there was resistance on the daily at $2.30, but since it had stalled at $2.30 before I thought it might break through on the second try, giving me an opportunity to add shares. That's what I did, adding 1K more at $2.30 and moving my stop to $2.20. The stock trended slowly upward for about 30 minutes where I decided to sell half my position for a small profit and move the stop up on the rest. I shouldn't have moved the stop because it quickly sold off and stopped me out which gave up move of my gains. The ideal way to play this would have been to buy the entire lot with conviction on the break of the flag and sell flat if the second breakout ($2.30) failed. By playing it the way I played, I lowered my risk but because I am playing smaller lots it wasn't worth the lowered risk given the added commission. Had I not moved my stop after the first attempted breakout this would have been a great trade, making me another 15 cents on top of the profit I already had by selling half, and if I had played it with conviction from $2.20 I would have made 33 cents or almost $500. Instead, I made $9 after the cost of commission.