I called out a trader yesterday (Don’t make this trading mistake in Facebook) on a trading mistake and today it’s my turn.
Man I messed up in CRUS yesterday.
And here’s why.
I missed this very important piece of information in Oppenheimer analyst Rick Schafer’s note :
As a result, Cirrus will obtain an average of about $5.50 for each iPhone 7 sold, up from about $3.50 for the iPhone 6 and iPhone 6+, the analyst estimated.
Said another way CRUS is in position to experience significantly higher margins on their product suite. The Street loves companies that are positioned to make more per unit on their core business. And stocks that have a news catalyst like this behind them can trade very strongly in the short term.
So I was trading CRUS. The market was selling off. And I kept shorting it and losing. Worse I couldn’t understand the sharp spikes to the upside so my losses were larger than expected. For those interested in very insider baseball trading, one of the buyers in CRUS was very sloppy and was unexpectedly (to this trader) paying offers aggressively.
I missed it. I missed the key fact after earnings were released. Margins were improving significantly. This piece of information changed the way CRUS traded. I need to be better than that.
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3 Comments on “The trading mistake I made”
Hi Bella,
even without knowing fundamental information that improves CRUS’s margins what did you see in the chart that it make you to short it?
Both arrows point to a area that doesn’t really provide a trigger for short sale.
Thanks for sharing your thoughts.
First trade is a fade short. Shorting an extended move. The second trade is a lower high from a double top. Both patterns didn’t work bc the intraday fundamentals were against me.
Thank you for explaining.