Twenty Fourth: Step Back

Summary

A chart that just failed. I also have to be more quick and remind myself that small profit is better than a loss.

Ticker:  LOOK

Target was $2.10 after I recognize a small ascending triangle. It also broke out of the long term downtrend line. After it broke $2, I thought it had strong support. It did not and I should have recognized that as a signal to sell.

Note: The risk was 9 cents and the reward was 17 cents. Almost 9:17 which is 1:2 ratio which is better than yesterday.

Note: When it broke the uptrend line and channeled, I should have immediately sold out as this was a sign of weakness. It also broke my second "imaginary" stop @ $1.99 which should have been my signal. My stubbornness cost me the small win.

Note: The second thing was I sold early @ $1.90 instead of my stop @ $1.84. I did this to protect myself from further losses. In hindsight, I should have left it be because that was low of day and it could have bounced a bit which it did later on. I guess this is in hindsight so perhaps I should think of a better plan for stops.

Prediction: CRNT

My prediction was correct with a failed follow through and a drop today. The volume was halved yesterday and today was a complete tank.

Note: I was right, but I want to get better at predictions. There was no news and it tanked. No continuation.

Please let me know if you have any comments or opinions. I would like to know if you have spotted any mistakes in my logic.