GG, FXI - Short
Made a couple nice trades using the retracement pattern. I had a fortunate 'mistake' on GG. As soon as I entered I went to place a buy-stop order at the top of my entry candle. Instead, I placed a sell-stop order and doubled my position. That's like the 3rd time that's happened in the last few weeks. After a brief debate about whether I should sell or not... I decided to keep all the shares which turned out well. FXI (:15)
- After a previous failed attempt to break the ORH (resistance), a nice 2-bar retracement pattern set up starting at noon (which was also S1)
- Entered short on a break of the 12:45 bar low
- Looked like price was going to once again test the ORH (S1) but it didn't and broke down
- Exited at S2 which was also near the ORL. I figured this was going to be a reversal area (it retraced again and moved further down)
GG (:15)
- I like retracement setups at either a pivot point or the ORH/L
- After breaking above S3, price moved back down and below S3
- A 3-bar retracement started at noon and broke just above the S3
- Entered short on a break of the 12:45 bar (busy time for me) and kept an eye on how price interacted with S3 again
- I was prepared to get out after 1:15 bar as it looked like it was finding support (remember, I had double my position and a very itchy trigger finger)
- Exited just above S4 which was my target price at entry
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6 comments:
I had that happen to me in DRYS on friday two times. Once on the buy side and once on the sell side. And DRYS is a whippy stock. So I had a few tense moments. Not fun. But much like your trade, I was fortunate as I cut losses in half by accidentally averaging down. and then Shorted while trying to cover by placing an order two times the necessary size. That too worked out as the cover spot was downside pivot and it led to a nice fall. However, I may have used all my luck credits for the year. BTW, nice trades.
Sorry, you confused me. If you placed a sell-stop order, how did you double your position??
Thanks, John
john s: since I was already short in the position... I basically shorted or 'sold' my position again. When I'm short... I need to 'buy/cover' the shares.
nr7,
FYI Proshares has a 2x Ultra Short FXI etf called FXP. If you had doubled down you would have been 4x. Vwery profitable!
bl: the stock symbol is FXP?? Thanks for the info. Also, where do you live? I imagine somewhere not in the US since you reply around the time I'm awake in the morning :)
Okay, gotcha. thought you were long on the trade, not sure. . I was thinking how in the heck can he add more if he is a sellstop order in?
Thanks
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