Trading Price Levels and Held Bids and Offers (HBs) (KORS)


HiGPS was over 1.50 on KORS, the VPN lost connection again so my execution and GPS numbers vanished.


KORS – HB held offer, loaded 5 short, it broke, came back down, got back in 10 short, and it went (used 3c stop)
BBBY – CE with trend on pullback, good risk mgmt 
AGNC – EECE – used a NITE entry short when I should have set a stop one bar lower
CELG – MO – lost more than intended on typo error – was trying to add a share and it took out my stop and I added it late
GBX – ORB – failed to hit out when it consolidated back inside OR

Best Trade – KORS
I saw a level at 52.00 between 10:40 and 11:00, and upped my shares well.  I exited half position on first burst, but the burst was enough to cover my stops even if I had only exited 1 share.  This being the case, and my goal was to remove risk.  I should have held more of the position and put a stop in on the other 4 shares 3c away.  I continued to exit using NITE until I ran out of shares and missed a good deal of the down move (my last exit was 15c), but had closed almost 2 bucks on it.  It just kept going down and I waited and watched it, not reentering any more shorts. 

Since it had shown a powerful open on positive earnings release today, I figured the flip back to bullish was worth trying.  I waited for it to break a 1BH and form a symmetrical bottom at 11:22.   


The chart as I watched it showed it flickering down from 50.50, so I thought that would be the top if it was going south more.  I was bearish below 50c and bullish above.  Since it had already moved south so far and for the reasons I mentioned earlier, I entered a buy stop order at 51c and it took me in after maybe 15 to 20 seconds of flickering and 50c holding (both good signs).  It shot to 60c on its first push past 51c. 

I immediately entered my stop at 51c so I wouldn't lose trying to catch a falling knife.  It took out my stop quickly, and went to 30c, came back up quickly and went to 60c again and then back to 55 where it seemed to be hold for a few seconds.  This delay at 55 told me to take 55c and put my stop at 50c again, and it never hit 50c again.

Lesson learned:
On both sides of the KORS trades my stops were taken out and I had to be aggressive at putting the same order back in when the prints and tape told me it was still right to do.  I know my stops and entries were the right ones even tho they were taken out.  It was simply correct to reenter them.  

*By doing this I kept my capital exposure low on a volatile and rangey stock that paid me well on being right.
Furthermore my stops were not mechanical.  They represented breaks of an important price point and my stance was bearish below it, and bullish above it, and I would have kept re-entering the corresponding orders as needed.

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