this looked like a green to red to me. the fast volatility scared my as the unrealized p&L was a bit all over the board but it looked like the stock was going lower. I covered once there was about 100 dollars profit. My risk was looking more like 1:1 rather than 2:1 as I wanted to short around the 20 mark but put in a market order. Is it a bad idea to go market on a green/red play?
Execution detail:
That makes much more sense. I was scared taking this trade even though it was in simulation. the P&L was flying back in forth positive to negative. thanks!
I'm making this comment to help myself ingrain these setups in my brain....
I don't think this is a green to red-cuz I think green to red and red to green refer to today's price action in relation to "yesterday's" close (1st sentence in the description-pg 88). There was a red to green in the first minutes today- I don't remember if you can have a green to red afterwards (kinda sounds choppy to me) but I don't think so cuz it wouldn't meet the other criteria. Maybe this could have been a rubber band short? Even tho the book (pg 90) says the stock must run up at least 2 days in a row- maybe yesterdays move combined with this morning's almost 4% move up would qualify?...and short when it can't hold over $20-a level that showed up in late Sept and maybe to a less important degree in late Aug?
Hello Tom,
I believe you are correct in your assessment. It seemed like a parabolic move upward so when I saw red I felt it may crash with profit taking. maybe this would be more a rubberband short. can you send me your e-mail again. thanks for the continuing feedback.
tom DOT r DOT brothers AT gmail DOT com
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IMO waiting for the pullback creating a lower highs was a better play to take the short because now you have a define setup...http://screencast.com/t/DS5k7mmo