Me and my students were eyeing on this stock since it broke down supports and emotional drops were present. We were waiting for signs of strength for potential spikes or short term bounces. I initially took positions when I interpreted presence of strength in price action 1 & 2. Both did not materialize my bullish bias so I dropped my positions.
It’s very important to note that even if the play did not materialize as expected, still keep the stock on your watchlist as long as the set-up was not ruined by a selldown or price action breakdown. Plot your trigger levels for re-entry so long as the risk reward is worth it. Luckily, there was really no other stock that compares to the potential reward that $PXP had. $ECP didn’t even make it to my watchlist because some parameters was not met.
Realizations on this trade are:
- Even if the set-up is perfect there’s a chance that the market won’t move as you expect it to.
- Take small losses, small gains, free trades.
- Prepare your buybacks as long as the set-up is still present.
- Don’t be afraid of buy backs, the worst that could happen is you follow your cutloss plan.
Did I feel frustrated that I wasn’t able to get at the lows? No, It’s about ease of execution, you need to position your mind where you’ll feel comfortable executing trades its not about who got the lowest and sold at the highest.
Well executed plays to my students too @Kasei @Winter
It may not be the perfect trades you were looking for but you did follow your own plans and executed them accordingly! All the best for our next trades!!