PocketPAT

Kicking myself for not swinging ALLY sooner, as I’d be up about $5,500 in premarket this morning from 18.50 (fully-sized). It’s very likely that I’d be up $50,000+ from swinging in both directions from late March, but all you can do is use what you know now and move forward. I’ll be looking for a dip at the open for continuation on small size, even though it’s vastly overbought. Ideally, I’ll be watching for the short signal overall. ------ 1:44PM: Make that roughly $7,000 I coulda woulda SHOULDA been up on. Not at all kicking myself anymore though. The strategy is clear and I'm excited for the future. Got a solid short entry at 23.75 and I've decided to only size-in by 1/3, once per day; unless the stock runs beyond an extra dollar in my favor (then I'd size in only once more that day). This will lower the risk for stop-outs throughout the day and lower my overall risk overnight, should it run back towards me for even a potential loss. I was skeptical about holding overnight in this market (which is the reason why I'd shelved swing trading as the market crashed) (also knowing nothing about any of these slow-moving stock companies) but after researching a bit on ALLY, while understanding the long-term chart history and volatility potential based on market cap and float, I feel comfortable sizing in over three days with overnight positions. It's not likely that the stock doubles or halves in one overnight session and with sizing in only taking place as it runs in my favor, my risk will always be low. Time will tell =) . I've also decided to begin using ETrade's "Specific Lot" selection method when executing and managing trades. My current stop for a 1/3 entry on ALLY is -90 and I'll be monitoring each entry as a separate lot on ETrade Pro. This is going to be SOOOOO awesome, because I can see when a particular lot (there will only ever be three) is reaching the stop-out maximum for a cut. Though, I'll very likely just set Hidden Stop Orders for each lot to automatically stop out after reaching it's peak (-90). I'll also set an alert for one dollar beyond my latest entry, so that I can simply monitor the trade for an hour or two, set any stops and alerts and simply move on with my day. If I get stopped out on an entry for a $100 loss, it's not at all a big deal. I can reevaluate the overall trade and go from there. If I get alerted that it's run beyond a dollar, I can size in from my cell phone, set another hidden stop and review the finer details when I return to my computer later. =)

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