PAPER TRADE (WIN)

• Setup: -------------------------------------------------------------------- Snapback
• Entry: --------------------------------------------------------------------- $47.80
• Shares: ------------------------------------------------------------------- 100
• Stop: ---------------------------------------------------------------------- $47.00
• T1: ------------------------------------------------------------------------- $48.50
• T2: ------------------------------------------------------------------------- $49.00
• Reward:Risk Ratio (T1): -------------------------------------------- 0.875:1
• Exit: ----------------------------------------------------------------------- $48.40

• Profit/(Loss) With Commission: -------------------------------- $47.00

• Details:
  Rubberband snapback play, 100 shares. Although profitable, this was not a good trade. I bought only 100 shares since the stock was very volatile and I knew the reward to risk ratio wasn't good because of that. I sold it quickly since the stock was so volatile and decided it was too extreme for my taste. This would have been better as a scalp play, but the major issue was that it wasn't a strong setup. After analyzing the trade I realized that the price was repeatedly bouncing off the 20sma, and I bought almost $1 above that so it was almost guaranteed to retest, which it did. A strong setup would have been to wait for it to test the 20sma a few times then buy on the 20sma as that would have given me a low price entry, solid risk to reward ratio and a little more peace of mind. This also could have been a short play after 11am on the crack of the $48.00 support, however it still would not have been appealing in terms of reward to risk, since the only visible resistance at that point was $48.50 which would have given me a 1:1 r/r ratio.