The day started slow without much momo and ridiculousness out there so I thought today is gonna be another slow ZZZzzz day just like yesterday.
Nailed both trades and I was up more than $1k each of them. SKLN couldn't get my full size filled but nearly top ticked it. Glad I didn't hold them and awesome SKLN EOD ss and didn't hesitate to cover. I was fully aware of the time of my trade so treated it as a scalp. But just one regret was OCLS midday short into weakness and got squeezed. it was out of boredem and I paid the price.
So the day started slow before I encountered NSPR:
Didn't really look into the news and afraid of missing out in this sluggish market so I jumped on it immediately after the halt. My first short was at $3.40ish. I told myself to cover into the first pullback if it holds but the problem is it spiked another 50cents before the pull and appraoching $4 mark. The price action was telling me $4 is the top. At that point everything looked good and right. My read of the chart is correct but it was crowded so when the real big pull from $4 to $3.30 occurred I didn't cover a single share and that was the big big problem. The price moved tooo fast and by the time I input the order it was already up 30 cents from the price I saw 2 seconds ago. So here is what I was thinking, it holds and squeezes past $4 and stuffed then pull. It didn't do exactly what I thought so I covered some near the top. At the peak I was down more than $10k!!!! My average was terrible!!! I was holding 24770 shares with average $3.668!!!! Glad I realized my average was terrible so I covered half on the way down. Then the tricky part came:
I was too simple minded and basically wrong every time trying to pick the top of the bounce and eventually I covered all the remaining position at $3.60ish. This stock is too jumpy and hard to trade!!! the entry and timing is the key!!!!!I traded it poorly!!! Basically wrong on everything: entry, timing, exit, read. But fortunately I survived. Tough one!!!!
Here are main mistakes/lessons:
1) shorting without thinking of escape plan and potential dangerous possibilities. Didn't quite think of the stop loss point so basically I added to the moon and ended up having terrible average and far from the stop out point meaning that if I am right then great BUT if I am wrong and stopped out I would take a big hit!!! that means my risk/reward ratio is off!!!! That's not the appropriate way to trade and is No.1 account killer!!!!!!!! the day started off slow so I got careless!!!!
2) After realized having bad average I shoulda have put at least half position cover order down just in case fast wash but I didn't!!! There are a lot of implicit benefits doing so: it reduced your position size and locked in some gains(Nate's so-called house's money), allows you to hold rest longer without second guess yourself, not influence by sudden volatility, make rational and object decision and you can always add back in if the price action goes correct again. Don't overlook it!!!!
3)I thought it wouldn't get far from $4 market but instead it traveled up to $4.40!!!! Madness!!!
4) I should have covered everything(yes I mean whole position) when double bottom is seen given the bad average. It bounced non-stoppably above VWAP and I couldn't take it no more so covered all.
5) great EOD post 2:30pm short but it was extremely hard to get filled and that should signaled me there were no buying power out there!! I should have slammed the bids but I didn't. I covered all b/c intuitively it doesn't looks like about to finish yet.
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