How I traded out of beartrap in $QQQ and $GMCR through $ARNA

Started the day today staring at bearflags in almost all names.  With a big red bar in $SPY and $QQQ yesterday and a gap down today. I leaned on the short side right at the open.  $GMCR came across a name with a lot of room to go below. I shorted on the break of 21 level. At the same time $QQQ and $SPY was going down as well. But when I realised it was beartrap in the markets. I flipped the switch and started looking for longs.

$ARNA was one of my go to stocks right at the open for the long side other than $KORS which faded all day. When markets started to rip north $ARNA was just on the verge of breakout from its intraday high.

Attempt 1: Breakof intraday highs

Attempt 2: I added on the break of 7.55 which was key on the daily level.

Two things to notice here for today.

1. Never ever have a bias about the markets while daytrading and be ready to flip on a dime if the market action is not what you thought.

2. Position sizing is imp. Eg: If someone has a regular risk per trade as $150 for $GMCR traded he would have taken 500 shares. On the trade of $ARNA in 1st attempt he would have taken 1000 shares and on 2nd break another 1000 shares. So even though he risked the same amount on both trades. But with correct position. He would have come out positive.

If you want to see real time how I navigate through these markets

Follow me on twitter https://twitter.com/#!/dchsn6

Facebook: https://www.facebook.com/Dchsn6

dchsn6

LEVERAGE and COMMISSION for my FELLOW Traders:

If you need leverage on your capital and are looking for 100%payout on your profits with competitive commission rates. Email me: dchsn6@gmail.com  and I can help you to join my group and get a group discount. Why pay more when you can pay less.

Advertisements
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: