I stuck to my plan with $IBIO of exiting at the EOD regardless of the price level. I was hoping for an end on green but it really doesn't surprise me that the EOD was in the red. This play has been bad for a while and looking back at it I see three major flaws in what I was doing. But one flaw is so major that I literally just slapped myself... no really, I actually did.
It boils down to this... ready???
I believed in the stock!
Yep, one of Tim Sykes biggest "don't do that's"
Let me break it down for you. I originally entered the trade on 4/27/15 with a position size of 100 shares @ $1.15. I liked the chart at the time. It was actually the same type of play that I'm going to be focusing on and it would have been a decent trade if I had not broken the rules. I even blogged it.
Originally I had a 5% trailing stop in place... not a bad idea but a little tight I think. The stock's momentum faded and the T/S was triggered kicking me out @ $1.1144.
That should have been that and I should have been done with this trade. It would have been a loss but a well traded loss.
Now this is where I made my biggest mistake. I looked at the charts, listened to the chat room chatter, ready the company's website, articles, etc etc etc. I said to myself, this has to go up! This looks like a great company and there is HUGE potential here! I "BELIEVE in $IBIO" this is a good play and it will work.
I then re-entered on the same day with 100 shares @ $1.1399 and had no stop losses in place... why would I? I believe and this will go up... it dropped again.
I said, "I BELIEVE in $IBIO still" this isn't a bad thing, in fact now I can dip buy and increase my position size with an even better entry point. So on 4/28/15 I entered again with 100 shares @ $1.0299... it dropped again. (still no stop losses).
I wake up on 5/1/15 and can't believe my luck! Another dip buying opportunity and I added 100 shares @ $0.9373 for a total position size of 300 shares. Still no stop losses and now plans of an exit strategy.
I wait, it drops, I wait, it drops, I wait, it drops... you get the picture right?
So there it is you guys, my big nasty mistake in all its glory. Please learn from it and don't do that!!!
My final exit was at the EOD today @ $0.6531.
I'll be posting this on Profit.ly shortly and the trade logged too, I'm waiting to hear back from them on how to log a trade like this with multiple entries and one exit.
Thanks for reading.