10/20_CRBP, ERII

day tons of lessons, 1 missing opportunity, 1 solid short

CRBP is our old and familiar friend because I was there on the big and crazy day in August. this is the setup that yields big profit with fairly high odd but the requirement is having a large account and the key to profit is SIZE IN earlier. so premarket is boring after the initial spike with high-$2.68. so what is the plan??!!!!!! My thesis is size in into morning strength using $2.68 as a guide, remember ONLY size into the strength NOT weakness. lots of people will use half/whole dollar mark for guides and knowing that I should put $2.49 limit sell order in the place and reshort at $2.53, $2.61, etc....even after $2.68 because we need wiggle rooms! unfortunately I missed it. lessons: I DID NOT HAVE LIMIT SELL ORDER IN PLACE!!!! 

this is the ticker I nailed with 1200 shares average $7.25 short. it already dropped more than a dollar. but looking at the chart, it's NOT easy to trade as it seems to be. 

- I knew from the get go that I wanted to place short but the questions is when and where

-strong premarket with 2 parabolics occurs and one more after the market opened, everyone was excited about 10-year contract. 

-thesis: NEVER short into first parabolic b/c you never know how high it will go, so my short needs to have set risk and infinite reward. 

-it started making new lows after initial spike so i sized in half. I made a mistake of adding to my full-size into the weakness so my average was $7.25 and it shows later that I was squeezed all the way to $7.90. Here comes my internal conflict: do I cover and take loss(shake-out) or waited to see the next pullback. 

-I told myself if the never pullback puts a higher low I would get out NO MATTER what!!!

-Luckily it worked out and importantly ONE THING I noticed: the stock was very THICK on the squeeze up and very THIN on the way down which leads me to think there are TONS of sellers+shorts there waiting to get filled and on the way down it literally just crashed in blinks of eyes. 

-the trendline methodology works PERFECTLY in this case!!!!!!!!!!!!!! level 2 plus T&S works the best by watching them together. 

-one mistake I used to make was shorting right away(lack of patience). the key for being a great short seller is first CONVICTION, second PATIENCE, third size in TIMELY!!!