Hey everyone. this post is about $FRTA which I was shorting earlier this morning and covered for a loss.
in the morning, the stock was uptrending and I was looking to short a lower high with a cover point at g/r. I shorted at $4.39 at 9:40 a.m. with day high at $4.45, thinking that would be the lower high, but at 9:41 the stock spiked 20 cents and came back down even further than my short entry. ive seen this happen before on other stocks but this was too scary of a move so I covered at $4.52 as it was going down when in actuality my short entry would have been a huge win now.
these kind of spikes scare me out. that was a 20 cent spike from my short in 1 minute, that came right back down. had I looked at resistance further back, I would have seen that $6.60 resistance from last month and tried to hold if it didn't break that, but cutting losses quickly is rule #1 and I tried to cut losses as quick as I could.
my plan was to cover at g/r so to see it dropping even further than that now makes me sick but I can only learn from this. hopefully you all can learn from this too.