Long SDS Trade Review (-2.02%)

Thesis: Prices had an aggressive run-up into previous highs, while the Micro, Small, Mid Cap indicies continued to lag the S&P 500 and Nasdaq 100. We finally got a pivot high to trade against on the short side, so I took it with a tight stop against the day’s high. chartOriginal Plan: 

Entry 21.28
Stop 20.85
Target 24
Shares 1
Profit 2.72
Loss 0.43
Risk/Reward 6.33

Actual Entry: Same as above.

End Result: chart

Symbol Date Entered Entry Price Date Exited Exit Price Profit (Loss)
SDS 10/13/2015 21.28 10/15/2015 20.85 -2.02%

Trading Notes: Not many notes here, the conditions for a trade on the short side were there and I took the opportunity once a pivot high was established. We didn’t get much downside follow through despite poor earnings, Yen strength, and other bad news from large companies like Walmart, but I chose not to stop myself out early since the risk was small and well defined.

Lessons: The market can stay stronger than you expect longer than you can stay solvent. If you get stopped out, take the loss and revisit it if / when conditions improve.

As always, if you have any questions feel free to reach out and I’ll get back to you as soon as I can.


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