Today I traded LEAP in the chatroom for a $150 loss. Wanted to review the trade and see what I did wrong. Alot of you guys were shorting the stock when I was longing it.. it really was up in the air but I wanted to give my thoughts behind the trade. LEAP had been a strong stock for two days then today all of a sudden bam it gets hit hard and falls all the way to the 50dma where it bounced.
If you take a look at the intraday chart you will see that the stock starting flagging after the bounce off that 50dma settled. I bought the stock in the consolidation of the flag thinking that if it broke out of that range then it would likely get into the squeeze zone and had a high probability of being a big trade. For me, the risk to reward was there. However, what was actually happening was the stock was flagging, but it ended up being a bear flag. Since I bought in to early, I was at risk for the flag breaking to the down side. I should have waited for it to break the top of the range around the 6.6 area to confirm the squeeze zone. I ended up stopping out at 6.38 for a .10 cent loss when the stock broke back down.