My log of a recent shake:
3:31 (EST) Buy EGGS at 25 13/16. Rises to 26 1/4.
3:45 Begins to decline. Passes under 25 7/8. I evaluate. Rising volume, ISLD orders continually getting picked off on the bid. Accumulating ISLD orders on the ASK. MONT coming to the inside ask. Not good. I get nervous. I think that 1/2 is where we are headed. (Later, I look back and see no indication that that could be a significant level for stop orders. I must have been afraid and hallucinated.)
3:50 5/8, 1/2, 3/8. Still no stopping it. There was a slight pause at 1/2. I made a good deal of money that day. Don't want to loose any of the profits (greed enters my mind). Next level is 25. Yes, looks like stock spent a couple of hours at that level earlier in the afternoon. Good stop level. I break my rule. I try to get out anyway. Place an ISLD order at 3/8. Doesn't execute. Cancel it. Call myself a coward. Dow is fine.
3:55 Hits 25. Big sell pressure from the stops. Goes to 24 7/8.
3:57 Strong upticks begin. 25, 1/8, 1/4, 1/2. Phew! I turn away to sell another stock that I still own. Make a profit on that one.
3:59 Still upticking on EGGS. 26, 1/8, 3/16. I place an order to sell at the bid of 26 1/8 on ARCA at 3:59:30. Executes at 3:59:49. Make 5/16 on the trade (instead of losing 1 or more).
A better trader would have anticipated the shake, bought at 3:55 and sold 4 minutes later and would have scalped about 3/4 or 1.
-Sword |
