First was ARNA. This was a really dumb trade because they were on CNBC, and they came out with some positive news yesterday which made it go up pretty big in pre market action. Muddy's rule is to short pre market stocks off RED, not because I think it "could go down. I shorted during a consolidation period before it went up later in the day. I didn't even check the news before going short. That is a big no no. If I am betting that a stock is going to go down I need to be sure that the fluff has worn off.
ARNA: -$20
Next was some futures trading in the NQ. I really wasn't focused here. I wasn't looking at any indicators for some reason. I just pulled up the NQ, saw that it had run up a bit, and thought it was consolidating before it continued upward. Also because it looked like the dow was doing the same. My two point stop loss was hit and I was out. Perhaps a wider stop and a better calculated entry next time?
NQ: -$40
Lastly was SLM. Cramer was on CNBC and said SLM "must be bought here" And it was, right before it crashed back down. IL alerted it in chat saying it could be a good short after it rolled over. I recognized the triangle price action I learned from Tortexal's Blog, saw that it was an "Easy to Borrow" stock and took a market order short at 2:53:21 Eastern time when the stock was at about 8.20. Then TOS told me I had to ask for shares to borrow. I'm thinking shares to borrow on a paper account?! Are they serious?!
Anyway, I pretended the order went through at $8.20 and watched the stock crash quickly to $8. I would've definatly called the bottom at $8, and therfore covered at $8. It went lower, but the point is I recognized the triangle pattern and made a decent mental trade.
SLM: +$20 (Mental trade)
Here are the charts and entries:
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