$ZAIS was a gapper this morning and i was looking at this as a potential dip buy on multimonth resistance (it was a multimonth breakout as you can see on the daily chart on the bottom left). I hesitated buying the damn dip that I marked as a potential buy, and saw it run all the way to $4.19. $0.80/share missed right there.
I decided to take a trade at the break of the whole dollar since I've seen great red to green moves recently in this market, but $ZAIS wasn't the one to do that. My question is, was my entry at $4.03 a good one? Did I chase, hold too long, etc?
Let me know how you think about my entry. All feedback is appreciated! Thanks.
Posted Mar 24, 17 11:46 PMbykenjiii16
Tickers
$ZAIS
It went through 4 for a second and didnt close over it along with a nice big upper wick which is a sign of weakness, I dont think it was a bad entry,, it was a 4 dollar fake out possibly a mini short squeeze, and anyone who jumped in early long got screwed, ur dip buy plan was a bit better but stocks that gap up this much usually end red
long turn chart shows that it doesn't hold when making new high's....your risk reward for the dip even at 3.36 was around .70 at best
@jeff081874 True that, i seen that right after that everytime it gets to 4 it gets sold off
I took the exact same trade as you. You didn't make a mistake, there was nothing you could have done better. You had a good entry point, above the whole dollar mark and above premarket highs. These were good signs to buy. Just sometimes stocks don't spike and there's nothing u can do except get out quickly. Rest assured that if you continue taking trades with these proper entries, more often than not you will have a winning trade. No one gets it right 100% of the time.
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