It was a pretty flat day. I took only 2 shorts(ARO and WAB) today and fell asleep, ZZZZZZZZZZZZZZ. You can see these 2 days here in my portfolio, in which I post my trades in real time.
One trade I took was ARO (Aeropostale, Inc), which is a mall-based specialty retailer of casual apparel and accessories, which gaped down a little bit right after the open. BTW, I like to short stocks that gap down or long ones that gap up. Well, if they gap too much in either direction, I would not touch them. Anyway, from the 5 min chart below, you can see my entry was not too bad. It bounced a little, which was in my stop loss range, and it dropped soon after. My entry was 36.52 and it touched the low of the day @ 35.95 . If I had covered it around 36, I would have made around 140. That is a decent profit for me since it did not take ARO too long to drop to the low and my position was small. But my plan was to exit it for a 2% move. As we can see, I held it for such a long time just to get out break-even. Such is trading.
Click on the image to have a better view
Where would you get out if you were in my shoes?
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