I had entered this trade on 1/9/06 and as explained on my last post, I felt that I had made a mistake. The day after the post (01/11/07) the stock closed making a nice shooting star formation for the day. (A shooting star has a small real body at the lower end of its range and a long upper shadow.) Coupled with the prior day’s price action, the stock appeared to be at the mid point of an evening star reversal. To complete the formation the stock would need to close deep into the first period’s (01/10/07) body. In addition to this the STO gave me a cross over with my other indicators showing a downward direction.
Seeing this, it renewed my feeling that even though I entered early the stock was starting to turn. Close to the end of the days trading session, I proceeded to update my contingent stop order to ‘sell at market if last was higher than 86.83 (1/11/06 high), but I entered 6.83 instead… Well no need to say what happened - Instantly stopped out. BUGGERR, Another trading mistake! Looking at the following days trading action, this mistake saved me approximately 10% on my loss. Lucky this time!
Lesson Learned – Check your order before you commit! It worked out in my favor this time, but next time it could cost you a SHITE load of profit!
Look below for the chart. The red circle shows the approx place where I exited the trade. The red oval is where I was kicked out of the trade! On a side note, the stock appears to be at resistence. My guess is that it will fall to around $85.00 before continuing up again.
Trade Details
Entered: 01/09/07 1 WHR MAR 90 Put @ 7.10, stock at $84.69
With Commisison (in & out) total investment: $735.90
Exit: 01/12/07 @ 5.90, stock at 85.90
Trade duration: 3 days
Loss/Gain: -$150.92 (20.73%) Incl. Commissions
Trade Rating 5/10
Best advice... let it go, learn your lessons and move on!
See you later - David
No comments:
Post a Comment