Traded it using IB. This is the case where you shouldn't have bias. I was long biasd because it was former runner, low float, positive earnings, unusual volume. from the short perspective, the stock has nasty chart, trash company, china's economic downturn, big resistance at $2.20's. the fact it fail to break above $2.20 should take me out!! I thought the chart is like biotech when a stock touches VWAP, short can really go panic by covering. this is perhaps the right thing to do: if you looking to trade ORB, ALWAYS wait for the VWAP touch and pull back before deciding to trade. from short perspective, it's a good short at VWAP. lost $370 on it. Again my loss was caused by my impulsive and emotional trade! You should never ever emotionally buy into the bounce and short into weakness!!!!you gotta WAIT!!!!! not appropriate way to trade!!!! I've taken full responsibilities for it.
this is the framework, ALWAYS wait for the pullback to go long and ALWAYS wait for the bounce to go short!!! the ONLY exception is AQXP, CRBP and low float, ridiculous, massive volume biotech stocks
ReplyDeletegotta stop making emotional and impulsive decisions!!!!
Deletethere is no volume followed by the big green candle which touches the VWAP, which is not good sign for buying!!!! when buying, there must be VOLUME!!!
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