I was aggressive buying GENZ into a pullback today and got stopped out of 2/3 of my position. GENZ closed $1.30 above where I got stopped out of most.
When GENZ broke above the opening highs of 66.85 and spiked to 67.25 my interest in buying a pullback was initiated. I bought 66.81, 66.61, and then 66.46. I hit out below 30c and then 20c. Ripper.
Has this ever happened to you? That was a retorical question. Of course it has.
Most traders fault their stops.Why didn’t I give that stock more room? I am such an idiot. Or those controlling the order flow. That F$$kin Specialist screwed me out of my longs. Freakin HFTs. Can’t they stay the heck out of my stocks!
What I have found over the past twelve years is that we undervalue the importance of an effective strategy to get back in. So we didn’t give the stock enough room. Could we have gotten back in? Not enough time is spent considering this part of our trading strategy. It is like we feel more comfortable focusing on all the unfairness of the market and not the opportunity.
Yeah those who control the order flow are gonna screw you. Now what? Could you have reentered your position?
Today after the close I will replay GENZ and find some places where I could have reentered, adding to my position. At least I caught the upmove with some stock.
3 Comments on “Could You Reenter?”
“I bought 66.81, 66.61, and then 66.46.” – So, your entry plan was to average down? I remember having read what you wrote somewhere else: Never average down.
Don’t get me wrong – I think a trader with a lot of experience and discipline can dot it in a planned manner. So do you teach your class now averaging down as an entry method for pullbacks?
Cheers,
Markus
Markus.
There is a difference b/t scaling into a position and doubling down. Buying some a little before your dream price and then into your dream price is a very effective technique to gather a large position.
Hope that helps!
Bella
I’m glad to see someone else sees the value of replaying a trade. That and annotating charts really helps me catch my trading mistakes.