I started back trading on Friday after about a week break (finals week). I was ready to get back to it, but for whatever reason, I just wasn’t really “feeling it” on Friday. Maybe it was because it was the end of a long week & I was just exhausted from all the studying (I should’ve done a better job at realizing this at the time). Friday was full of opportunities, practically all of which I missed – GMCR TSLA DDD MCP. I missed the morning opportunities & got chopped up a bit trading the piece of s*@t $GAP, so I ended up taking the rest of the day off. Piker!
Anyways, I just wanted to put the following trade in a bit of context before getting into it. The only potentially awesome trade I tried to make was a 2nd Day Play in LULU. I noticed the stock had been strong the prior day with above average volume. The pullback consolidation area after the morning drive on Thursday (prior day) was to $78.30. So I was bidding at for a ½ tier position at $78.30 on the open expecting to risk 20 cents. The intraday low on Friday was $78.26 – 4 cents lower than where I was bidding, yet I never got filled! I’m still not completely sure of the reason (HFTs or platform issues). Either way, after not getting filled on my $78.30 bid, the stock allowed for an entry about 20 cents higher around $78.54-$78.56ish but I did not take the trade. I was being too “nit-picky” with my entry, especially considering the fact that my target was 2.5 points away. I could have risked 25 cents on the trade & still would’ve had a 10:1 risk/reward!
The point of this Trade Review is to keep things in perspective; know your targets & if the stock is trading favorably where you can still enter with a good r/r, then take the trade. Don’t worry if your initial attempt to get long a stock didn’t work. Also, be aware of your state-of-mind. Mine on Friday was one of tiresome & unpreparedness, which are not conducive & even detrimental to your trading (case in point). I hope this is helpful to some. I know it is for me.
2day, 15min view of LULU: