insight missing your entry?

[onlybui]

I made a big mistake today getting into this trade. I Missed my entry around 37.70's. All I knew is that the stock already broke through its 52week low on Friday and does about 70000 avg volume, the 52week low was around 39.00 and in the last 5 days was trading around 45. I knew I got a bad entry when I was getting more shares than I wanted. The stock has a 8-10 cent spread. I'm just not understanding my risk and reward if I'm short @ 37.28 how much should I risk if the trade goes against me? Would this be a gamble trade if I held it just a bit longer? If I missed my entry should I wait for a better setup? what do you usually do when you get in on a bad entry? Do you usually just wait for a pull back?

 

[nazzdack]

(1) If you're trading in the direction of the primary trend, it can be "safer" to hold on longer if that trend resumes. (2) Instead of initiating positions AFTER a breakdown has occured, it's better to anticipate where the breakdown is likely/supposed to occur. (3) You can also have an expectation that the stock you're trading will re-test the previous breakdown level before resuming its primary trend. (4) Trade stocks that have higher average daily volume in order to reduce slippage on your trades.

 

[maxpi]

If you miss something like that it's missed, jumping in late is not good if your plan does not include it. I guess what you really did was to stray from the plan.. once you stray from the plan it is good to get back with the plan.