PAPER TRADE (LOSS)

• Setup: -------------------------------------------------------------------- Red to Green
• Entry: --------------------------------------------------------------------- $2.73
• Shares: ------------------------------------------------------------------- 500
• Stop: ---------------------------------------------------------------------- $2.68
• T1: ------------------------------------------------------------------------- $2.83
• T2: ------------------------------------------------------------------------- $2.93
• Reward:Risk Ratio (T1): -------------------------------------------- 2:1
• Exit: ----------------------------------------------------------------------- $2.60

• Profit/(Loss) With Commission: -------------------------------- ($78.00)

• Details:
  Red to green play, 500 shares. This was a mismanaged trade. The setup was decent for a red to green play, but I didn't consider the fact that the stock had already run hard for the last four days. Each day it ran it became less and less likely that it would continue to do so before pulling back. I bought when the price took out the previous day's close at $2.71 and should have given it 3-5 cents MAX for a stop. Instead I mismanaged it entirely, buying too high and ignoring my stop, only to sell for a 13 cent loss. I need to remember that in order a red to green play to be valid there needs to be a washout and then a rebound through the green mark. In this case I bought on the very first candle 2 minutes into the open and got caught in the washout. It didn't go green either, most likely because it had already run up almost 100% in the last 4 days. See charts:

  http://i1155.photobucket.com/albums/p560/ckz8780/85203b1a.png