Wednesday, April 27, 2016

4/27_LGCY_-$4K, FOMO trade!!

















-subconsciously told myself to step up the game after being hot for 2 weeks so I intentionally increased the size.
-the size wasn't the main problem. The main problem was sizing in too early and too big!! I threw 4000 shares at a time. The first short was at 9:33am and after saw the stuffing action I shorted another 4000 shares at $3.30ish but it kept going against me. At the peak of the first spike I was down $3k then I saw emotional long wick candle so I shorted it again. I ended up holding 15000 shares at $3.33 and the good part was I covered 1/3 of it at $3.27.
-Now after my first cover here came the problem....it kept going against me and instead of covered I shorted again and once again I only covered partial. Then It did HOD stuffing and I thought finally but boom it continued trending upward. I ended up holding 15000 shares at $3.44 average. At the top I was down $7000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Thank GOD it didn't go to $4 otherwise I would blow up my account but still got liquidated and I covered the rest slowly feeling it was extremely crowded.
4 mistakes:
1) in the position toooooooo early and tooooooo big!!!!
2) refused to cut the entire position off when holding bad average.($3.34 and HOD is $3.60)
3) I talked about Price-VWAP deviation!!!!! Why did I short twice when it was merely slightly above VWAP!
4)Volume!!!! Auspex said shorting on low volume=Suicidal!!!! Couldn't agree more BUT why did I do the exact opposite!!!


















Then I did a revenge trade on it getting long with average $3.57. I was going up and down, up and down the whole day. Not the typical trade I would take because it was due to emotions and recouping loss mentality. Gladly it worked out but definitely must not do it again!!!!! Bad trade!!!!!

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