PAPER TRADE (WIN)

• Setup: -------------------------------------------------------------------- Intraday Flag Break
• Entry: --------------------------------------------------------------------- $7.49
• Shares: ------------------------------------------------------------------- 500
• Stop: ---------------------------------------------------------------------- $7.29
• T1: ------------------------------------------------------------------------- $7.89
• T2: ------------------------------------------------------------------------- $8.25
• Reward:Risk Ratio (T1): -------------------------------------------- 2:1
• Exit: ----------------------------------------------------------------------- $7.60/7.48

• Profit/(Loss) With Commission: -------------------------------- $5.50

• Details:
  Earnings play, intraday flag break. I had this on watch for a breakout above $6 on the daily. I expected it to run from $6.00 to $6.30ish as that was the next resistance spot on the weekly. Since the stock released earnings, it gapped up above that resistance level so I didn't buy. I thought since it gapped and the market was weak it was likely to fill the gap, but earnings overpowered the general sentiment and took the stock up over $3! I did catch a small piece of the move, which is this trade - a small intraday flag on the 2 minute chart that I bought the break of. This was really probably a mistake since it was mostly a jealousy trade since I was annoyed that I missed the biggest part of the move after picking out the setup perfectly. In the future I need to remember that if a stock gaps hard like this one did, above a significant resistance level with a catalyst like earnings or PR, I should not be afraid to buy it higher and use the resistance level as support (in this case, fro example, I could have bought at 6.30-6.35 and used a 5-10 cent stop). See charts for daily setup:

  http://i1155.photobucket.com/albums/p560/ckz8780/49a71d68.png