Went back to my old gambling ways on this trade. Multiple mistakes: 1.Only had 20 minutes in the morning to trade before work. That's a very rushed window of time. 2. Bought at an insignificant price. Because of rush, I bought at .74 in anticipation of B/O at .79 when i should have waited to see if B/O would hold. It can be okay to wait. Can always potentially a dip later if you have the time. 3. No risk/reward gameplan before going in. ALWAYS have a PLAN!
Bought this contract winner on a breakout with a small position as im still learning. I got scared and didnt stick to my goal of 20-30 cents a share but honestly didn’t really have much of a plan going into the trade. Breakouts on earnings winners/contract winners can definitely spike. As i write this it went to 4.40 the next resistance point. Gotta have a solid goal and stick to it. Also need to better understand getting out of a trade efficiently. This hit 4.30 but dropped 10 cents quickly.