Today we traded ACI and earned 200$. In fact, much more could have been earned, but I did a lot wrong with this trade. Let's try to figure it out, why I entered this action and what was wrong.
ACI appeared on my radar yesterday, when the news came out on PCX. Usually when news as bad as the PCX comes out on a stock in a particular sector (bankruptcy), then other stocks in this sector often fall too. As you can see in the graph, JRCC Decreased Seriously Due to PCX News, ACI fell too, but slightly. look, how similar are these three graphs.
so, I watched ACI today and saw, what stock открылась с гепом вверх. JRCC immediately started to fall from the opening, so I paid all my attention to ACI. I noticed the moment, when the stock started to show weakness, and made a short cut on approaching the moment of green to red. Excellent entrance by 6.72! The stock made an impulse down, and I covered part of the position by 6.52. The stock is back a little… and showed an excellent point to add to the short! I covered myself near intraday resistance (and that was a mistake). After hitting resistance, the stock begins to seriously decline and at the end of the day closes in a big minus… as I expected. I didn’t trade very well, but at least got a good lesson and made some money.
* caption on the chart on the left: weakness in stocks and our short entry point at the green to red signal
** caption in the middle of the chart: intraday resistance… point of addition to the short position… instead, I completely covered my.
Maribeth Willoughby
