Every stock comes down or goes up at one point or another. Key is timing. Timing is especially important for day traders like you and me. You and I do not have the stomach for deep draw-downs (risk). So we aim for small moves with little tolerance for risk. Trading is not a contest of will or courage.
STEC broke down in such a strong market. It is not a surprise since there are just too many people who have profitable positions. I had been watching it in the past couple of days. And I shorted it a few times until yesterday when TS did not have any shares to lend to shorts like me. Nothing substantial came out of my previous shorts in STEC albeit most of them were winners. My pertinence was wearing thin after watching it for a few days and stopped watching it today. I did not even bother to check if Interactive Brokers had any shares to lend. In fact IB had! Let’s take a look at STEC’s 3 min chart. If I had watched it and known IB had shares, I would have absolutely shorted it since it was a textbook setup.
Click on the image to have a better view
Do not get me wrong. You were not supposed to look for a short entry in today’s market. Good money could have been made much more easily on the bull side since the general market did not gap up at all. The move in the AM was huge and anyone jumped in early on the bull side could have made good money. That is why I stopped shorting right after the very first try.
I am bound to shorting this month since I am running a small test. My test is that I will have shorts only for this month regardless. Once this month is over, I will be back to the flip-flop mode.
I hope you are all doing well.
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