Factors that influenced the price:
-4/3-now All-time b/o
-First red day was yesterday
-All-time vol b/o today
-CBD play (host sector)
I've been watching this CBD stock for a couple weeks now. It's been a crazy supernova going up from the 0.04s to the 0.6s. I was tempted to buy b/o in the past, but there has been no earnings or contract release yet. Yesterday, the stock had a huge first red day after it's multi-month supernova run-up, so I was looking to buy the morning panic dip today. We had a massive morning panic. 45% down by 10:05am. I planned my entry for a bounce off of 0.4. When it first started panicing, it came down to 0.45 and started bouncing, so I was tempted to jump in, but I didn't. It came down to 0.405 and then started to uptrend, so I set my limit order. I didn't get filled right away, but it came down back to within my limit order after a few minutes. 2 minutes later, support broke of 0.4 and I watched level 2 meticulously waiting for the bid to snap on 0.395. As soon as it did, I was out. It was a good exit. I had another entry planned for 0.3 panic bounce, so I waited for that. The highest I was willing to put my limit order on the bounce was 0.315. It paniced all the way down to 0.314 (where it had only one tick). I could have gotten in at that moment, but it didn't fit my pattern of waiting for the bounce to actually start before getting in. If I had gotten in at that point and held to the peak, it could have been a 112% winner. But I would never have held that long anyways.
What did you do well on?
-I did well on controlling my emotions to enter the trade. I never traded the stock when it didn't fit my setup patterns even though it was a supernova consistently breaking out. I waited for the first red day and the following morning panic before trading the stock. I didn't enter the trade when it started bouncing from its panic above my planned entry levels.
-I cut losses quickly
-I am happy with the nicely played trade, even though it didn't result in profits.