My other RADA trades could have been much better had I COVERED ALL once it started to grind back up, and COVERED ALL into the 3 wash which bailed me out at the time, I left 1000 shares on both times and "tried to make them work" with more re-adds in places I wouldn't normally short. Ended up making $1000 from that whole mess, basically a good first trade, a bunch of covers in the middle for breakevenish, and then 5400 shares from 3.11 to 3ish, I will explain it a bit more below.
FOR NEW READERS ONLY: If I am scaling in and out of a position, that is considered one trade until I am completely out of the position and then it becomes a new trade, that's why some trades have a lot of shares, even if I never had that much at once, if I cover half and then re-add my cover, it's still considered one trade until I am completely out. The entry is the average of the entries and the exit is the average of all the exits. The entries/exits are rounded to 2 decimal places, but the exact number is calculated for the PnL, so that's why the dollar amount may look different than what you see. (it may be 7.165 instead of 7.17, etc). Also, you can click on the charts if you want to make them bigger to be able to better see the entries/exits.
IMGN
I wanted to short this into a parabolic out of the gate, I was watching very closely when it was around 9.25 and knew that 9.25 was the premarket highs, it looked fairly strong still and I thought it might pop past it and go 9.30-9.50, I was looking for a better entry if that were to happen and didn't want to be too early, I had an order in at 9.34 to start in but it was rejected perfectly at 9.25 resistance. I ended up scalping it long for 10 cents into the washout from 8.84 to 8.94, shoulda "flipped short" in this case but oh well. Then it eventually faded to 8.33, and I actually had an order in to go long there (X Canceled IMGN B 1000 0 8.33 ARCA L 09:54:16 DAY), but canceled it when I was trading CAPN at that time and wanted to focus on that.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Long | 8.84 | 8.94 | 1000 | $0.10 | $100.00 | 1.13% |
- Lessons:
- Premarket highs on big gap ups are great areas to use as a resistance point for a short in the first few minutes of spiking, can at least short a small position at that point, so that you don't "miss the move", it can turn very fast
CAPN
Scaled in short into the parabolic, 500 shares 6.97, 500 at 7.09 and tried to add 500 "to a winner" at 7.05 when it was topping out but only got 100 shares, ended up with 1100 shares 7.03 average, and covered 500 at 6.82, 500 at 6.73. Had some "fishing" orders in from 7.35-7.50 to scale in short around 13:40, but it ended up topping out and fading and I didn't chase it down, it's too thin, I only short parabolic's for quick scalps.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Short | 7.03 | 6.77 | 1100 | $0.26 | $287.00 | 3.71% |
RADA
My first trade was 1392 shares 2.75 average and it pulled to 2.55 and I only covered HALF at 2.59, then readded another 700 and 200, basically at my average to have 1600 total shares 2.74 average. Previous HOD at 2.80 would have been a key place to stop out and then 2.80 RETEST and hold MULTIPLE times would have been another place to take the loss, I only got 400 filled at 2.82, and it pushed back up to 3.10 where I would have been shorting it with size with no position and nailing it, but couldn't because I was still stuck in this stubborn trade. I traded RADA a bit more and made a little, but I was really waiting for another 3 push to size in, and I did, 4000 shares 3.03 and it pulled to 2.90, I covered 1k 2.98 1k 2.93 1k 2.90, then readded 1k at 2.96 on the bounce and covered that at 2.88, I missed covering my last 1k at 2.85, then was too stubborn and greedy to cover the rest 2.88-2.93, and let it grind back up and then readded in bad spots "trying to make it work". I ended up with like like 4400 shares 3.04ish average and it pulled to 3 and I covered 3k for breakevenish, and left 1400 shares on and "tried to make that work" AGAIN, not covering ALL into the dip. Readded again in bad spots and had 6400 shares 3.09ish average and only got 1k covered at 3.09 for breakeven and 3.10 was still absorbing a lot and holding it up, readded another 1k at 3.16 1k at 3.19 really looking for a "stuff" here and washout. Now I had 7400 shares 3.111 average (too much size), I covered 1k at 3.13 1k at 3.11 (reducing some risk), and then got the big washout to 2.97 and I covered ALL into that 3.07-2.97 (most of it around 3). It all worked out in the end, but I turned a good trade into a BAD one on my very first trade by COVERING ONLY HALF, and turned my good trade from 3.03 into an unrealized losing trade by NOT COVERING 1000 shares and "trying to make it work", and then did it again by NOT COVERING 1400 shares at 3 and "trying to make it work" again. Could have traded this stock a lot better today, have to make sure to always be COVERING ALL when it starts to grind/perk back up and then wait patiently for re-entries at higher prices.
| Type | Entry | Exit | Shares | +/- $Amt | $ PnL | % Pnl |
| Short | 2.75 | 2.81 | 2292 | -$0.06 | -$143.60 | -2.28% |
| Short | 2.80 | 2.78 | 1000 | $0.02 | $20.00 | 0.71% |
| Short | 2.82 | 2.80 | 1000 | $0.02 | $20.00 | 0.71% |
| Short | 2.92 | 2.83 | 1000 | $0.09 | $88.52 | 3.03% |
| Short | 3.07 | 3.00 | 15412 | $0.07 | $1,020.10 | 2.15% |
- Lessons:
- Whenever "early" on a news related spiking stock, ALWAYS COVER ALL into the first dip/washout, often they will bounce back and have a secondary run before choosing a direction from there
- ALWAYS COVER ALL when a key area acts as support multiple times and refuses to breakdown (2.80 resistance became support and also VWAP was supporting it just below that area at 2.78
- Also be careful of the "support breakdown and then reclaim", 2.80 broke and it went to 2.77 but then it held and bounced all the way back and continued to hold 2.80 and then pushed above 3
- ALWAYS COVER ALL when it starts to grind back up, in this case, 2.85 held and it started grinding back 2.88-2.95 and I was too stubborn to cover my last 1000 shares from my good trade (and also a 2.96 readd) and ended up turning it into a loss
- ALWAYS COVER ALL into a big washout when it's holding a key level as support such as 3 dollar whole number
- Do not make "re-add's" in bad spots "trying to make the trade work", if it's grinding up and still the "frontside" it's better to just take it off, there is no reason to be short anymore, only want to be taking advantage of emotional "shoves" and covering once it the panic is gone and it continues to hold an uptrend
I was stopped out of RADA and didn't re-short. I enjoyed reading your blog, keep up the great posts.
ReplyDeleteTomorrow should be an interesting short of QUNR, its been up the past 4 days with large green candles. Should be interesting...
Nice work Jordan, can ask: what broker, clearing and platform you use? thanks. !
ReplyDeleteAppreciate the positive feedback, I use Suretrader, which uses ETC clearing firm, and I use Dastrader Pro platform, which costs $104/month with everything that I need for it, but it is totally worth it, it's the best platform out there in my opinion.
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