Today, the 2 weakest sectors were Financials and Basic Materials. The market gaped down because of Financials. So the direction was obvious. That was to short guys from these 2 sectors.
PNC (PNC Financial Services) was the first target. My entry was nearly perfect. But a good entry alone is only half of a successful trade. You need a decent exit to complete the trade. It moved down nicely after my entry. So I eagerly moved my stop loss down a bit below my entry to protect my downside. As you can see, if only my stop loss was a bit wider, that position would have turned into a nice winner. It would have triggered my profit taking when it broke the the previous low.
There is nothing wrong with this trade. It was just bad luck. A lot of stocks would shake you out in a situation like this even if you leave a bit more room for the stop loss.
Here were 2 short trades I took in PNC today. You can click on the images to have a better view.
The other trades I took were GES(Guess?, Inc.) and ANF(Abercrombie & Fitch Co). But they were pretty flat. You can see all the trades here.
Try a bar-by-bar replay and then feel free to tell me how you would approach this stock.
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