Here is a trade review on OWW. This stock went bad for me. YOu guys know I like to minimize my risk and keep my losses 5% or under for the most part. This stock had a great daily setup. Its what we call a Flag Pattern which is essentially a stock that goes sideways/bases for a period of time after a big momo thrust that can often be 100% plus moves. This is one of my favorite patterns to play and so we entered this at 4.05 yesterday in anticipation of a breakout.
On this trade a few things went wrong. #1 it might have been on too many peoples radar. When everyone has their eyes on the same stock the breakouts often fail as people are just buying and selling on top of each other then they all dump at once. #2 I didnt honor my stop on this which i shoudl have. it gapped down i believe lower then my stop but i should have still sold it right away. #3 the close was pretty weak on this stock yesterday it ran to 4.11 and just faded..that should have been one of my clues that the stock could dump in the morning. When i swing i often like to only hold stocks that I have a profit cushion on or that close at their highs or near the highs with volume. This had neither!
All in all i sold this at 3.75 for nearly 30 cent loss! eek not a good trade for me and I could have really minimized the damage by just following my rules and sticking to my trade plan
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