If you read my previous 2 posts on short squeezes (odds enhancer for breakout post and watchlist) and happened to enter on a few, you might be pretty happy.
Here are a few trades I am in that was on the list.
Red line was the trigger. As I was still a bit hesitant about my own research and backtesting, I entered with smaller than usual size. Fortunately the day after I was triggered in, we had a huge gap up and I took off 1/2 of my size. I took another 1/4 off today as it pushes higher and will leave the last 1/4 as I trail my stop up below the previous close. Awesome trade.
Here is another I entered with smaller than usual size, but it didn’t matter, as you’ll see on the chart.
Boom goes the dynamite. I’m out with 3/4. Wish I would’ve stayed in full size as it would’ve probably been the biggest winner of the year. Just trailing my stop up behind the prior day’s close with the last 1/4 size.
Of course, not all are winners. Here is one that got triggered and I am still in. I saw heavy, heavy selling coming it once it broke out. So either long positions are taking profits as they aren’t too convinced of the breakout or some funds are adding to their short positions. Maybe the funds know something I don’t? Well if they’re right, I only lose 1% of my account. The reward is absolutely worth the risk. If it breaks that recent high one more time, I think they’ll exit as they’ve brought this stock down from breaking out 3 days in a row and more eyes are on this stock to breakout long so we should have more buyers coming in as well. Just my thought process on keeping my conviction.
Last one I had on my list that I entered The day it triggered, it shot up and hit my first target. I thought, wow, this is going to the moon. So instead of sticking to my rules, I only took off 1/4 of my position (instead of half like I have planned). I forgot to move my stop to break even and 2 days later, I saw some red in my account manager and when I took a look, my slightly profitable position was now slightly losing. Frustrated, I just closed it out. My fault so it was my way of punishing myself. I would’ve been alright if I stuck around but, meh.
The rest on the list either didn’t trigger or I missed and wasn’t able to enter. I don’t always put out automated orders to enter. I like to see what it looks like when it approaches the breakout point. I don’t want it dilly dallying up there. If I get a nice surge up, I want in. So depending on my feeling, I may stay out even if all the stars align.
Here is one I had my doubts on that was on my list. Reason being there were 2 points of resistance in May and March. So I thought, it would hit some speed bumps at those points and I would rather a clean, rapid move up without any sellers coming in.
Damn. I gotta stop looking at this chart. Keep kicking myself for not entering on this.
That’s all for now. Hope to give you guys a few more to look at and hopefully you can make up your own trade ideas and share!
Great weekend everyone.