Decent Screw Up on $NETE – Size Matters

by akos on November 23, 2014

$NETE – A story of a short squeeze?

As of lately I try to go short more and more and go long less and less, let alone tying to gap something into the EOD.

I take full responsibility for this trade (and all the trades). In our chat room there are great tickers but of course you gotta know how to play ’em too. 

On the 20th of Nov. I went long $NETE when it seemed to have a decent close. I traded $NETE a little bit like a jump, but oh well at least I’ve learned something.

Please Click on Pic to Blow it up!

$NETE

 

So here is the run down how it happened:

I didn’t really scaled in, just bought x amount of shares at 1.78 when I saw it was starting to perk on volume. It was testing HOD at the EOD run but failed to break it.

I actually wanted it not to break it, thinking that would potentially make the morning tighter so it would pop bigger at the open due to anticipation. (Check the volume at EOD).

Friday, pre-market that volume started to concern me because there was a huge anticipation for a gap (but when there is no gap up, buyers from the previous day want OUT! So when this junk dipped below 1.70 I got scared thinking that if it doesn’t hold support at 1.65 and then at 1.60 it is going to flush to 1.4.

I asked myself: Would I buy this thing here right now? – The answer was a definite HELL NO!

It was testing support but never broke it. Regardless, I got out at 1.72.

And guess what! 2 minutes later it ripped to 1.85. Aughhhhhhhhhhhhhhhhhh! Screw me! Talk about timing.

I would have in that big spike to 2.10 into the giant volume spike. I could have made .30 on  a share instead closed my position with a loss of .06 per share.

The lesson

Size matters.  Had I have smaller size I would not have been shaken out like that. Instead of going full size, try to size in, which means going either 1/2, 1/3 or 1/4 at first  and if the trade is working in your favor you add to the position.

Add to winners.

I hope you learned from my mistake.

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