Trade Review SD "How to Not Manage a Trade" | Bulls on Wall Street

Trade Review SD "How to Not Manage a Trade"

Wanted to do a video on SD.  This is a trade we took last week off a flag breakout.  This trade had some positives and negatives.  But overall I feel like i bungled this trade and gave back unneccesary profits. We timed our entry near perfect to the penny it started to move right after the buy.  As we were talking in the chatroom we all though that it would run to the 200dma which is nearest level of resistance and thats exactly what it did.  But my management of this trade went wrong as I was being greedy and wanted the homerun.  As traders we are always supposed to be selling into resistance.   A part of you will want to hold it thinking that it will break but the reason resistance is called resistance is that it resists!  You can always sell at resistance and if it breaks above it you can buy back the stock.   Think of it as insurance.  Resistance on thsi stock was at 9.00 I couldhave sold my position at 9.00 and if it broke just buy it back at 9.05.  I pay a .05 insurance premium on it.

 

I give myself a C- on thistrade.  I made decent money but it still could have been much better

 

Entered 1350 shares at 8.43  sold 1/2 at 8.85 and stopped out at flat on the rest.  I let the stock come back down nearly 60 cents on that last 1/2.  big nono.

What could have been a 700 dollar profit ended up making 280 bucks!  shoot.

This can all be fixed though by following your trade plan and managing your trade correctly!

 

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