Here is a trade review in SEED. This is one of my favorite setups its a Pr/Breakout. The stock got a Pr that an investor had gobbled up a good chunk of shares. On a stock this low on the chart that has been beaten down. Pretty much the whole news cycle in this has been bad. So any type of Pr that sounds positive that can be an addition to the company will breakout the momentum traders who sense a potential reversal in the stock. Then you will get another round of fresh buying from anybody who is holding this stock short as they sense that their profits might get wiped out. We play these type of setups quite often. And on SEED we had a perfect entry at 1.85 to get a real nice gain.
Except I made a couple errors in my trade management on this stock.
1. I did not look at this stock on multiple timeframes. The best stocks and the best traders eyeball all their trades on at least 3 timeframes. The longterm, intermediate, shorterm. This will help you eyeball potential levels of supply & demand. Also when stocks align on all timeframes the breakouts are very powerful.
2. I kept avging up which is a good thing if your in an area where there is no supply of shares (up in space)
3. My stop was too lose. After my last avg up at 2.33 when that breakout failed I needed to immediately get out of this stock and book profits.
I totally nailed the 2 entries at 1.85 and 2.15 but just had an error of judgement a lack of preperation a good ole fashioned brainfart on the management of the trade. I had greed in my eyes! I wAS Thinking homerun trade. But you dont get rich from chasing candles & playing homeruns. YOu stay in this game by being methodical and consistent and constantly taking gains 1 trade at a time.
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